2025 Bills SB 270: Young Entrepreneurs Tax Relief Act
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Libertas Institute supports this bill
Staff review of this legislation finds that it aligns with
our principles and should therefore be passed into law.
If anyone in Utah deserves a break on their state income taxes, it’s a young entrepreneur working hard to earn money and develop essential business skills.
SB 270, sponsored by Senator Heidi Balderee, provides a state income tax credit for self-employed individuals 19 years old or younger. This bill allows young entrepreneurs to claim a nonrefundable tax credit, meaning the credit can reduce their tax liability to zero but does not provide a refund beyond that amount. Here’s how it works:
- If a young entrepreneur earns enough self-employment income to owe $400 in state income taxes, SB 270 would grant them a $400 state income tax credit.
- If another young entrepreneur is highly successful and owes $4,000 in state income taxes, the bill would allow them to claim a $3,000 state income tax credit — the maximum amount permitted under the proposed law.
At Libertas, we have long supported policies that empower young entrepreneurs. SB 270 ensures that hardworking youth can keep more of the money they earn, allowing them to reinvest in their businesses and futures. For these reasons, this bill deserves strong support.
