SB 0595 Establishes tax credits for persons paying for or providing child care
LR Number:2703L.01I Fiscal Note:2703-02
Committee:Ways and Means
Last Action:01/11/00 - Hearing Conducted S Ways & Means Committee Journal page:
Effective Date:August 28, 2000
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Current Bill Summary

SB 595 - This act authorizes tax credits for child care payments. Qualified employers may take a tax credit for 10% of the amount spent on child care services offered to children of their employees. No tax credit will be allowed if the employer fails to provide subsidized child care services on a sliding scale, based on need, to at least 25% of the children served. Tax credits will also not be allowed if the employer discriminates among his or her employees or does not license the child care facility.

This act also allows individual taxpayers to take a tax credit of $400 if the taxpayer receives no public assistance and the taxpayer's qualified spouse cares for their child or a child of one of them. A taxpayer may also take a tax credit in specific amounts if the taxpayer makes qualified child care service payments. Receipts should be filed with the taxpayer's income tax return. If the amount of tax credit taken exceeds the taxpayer's liability, the difference will not be refunded or carried over.

This act will apply to all taxable years after December 31, 2001.

This act is substantially similar to SB 250 (1999).