SB 0205 Establishes tax credits for persons, including employers, paying for or providing child care
LR Number:0433S.01I Fiscal Note:0433-01
Committee:Ways and Means
Last Action:01/24/01 - Second Read and Referred S Ways & Means Committee Journal page:S137
Effective Date:August 28, 2001
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Current Bill Summary

SB 205 - This act provides several tax credits for child care services.

TAX CREDIT FOR EMPLOYERS - This act authorizes qualified employers to take a tax credit for 10% of the amount spent on child care services for 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.

FEDERAL CHILD CARE TAX CREDIT - Taxpayers who are eligible for a federal income tax credit for household and dependent care (Section 21 of the IRS Code) shall be entitled to a credit in an equal amount against their Missouri tax liability.

NON-EMPLOYED SPOUSE CHILD CARE TAX CREDIT - 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. 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.

CHILD CARE SERVICES TAX CREDIT - A taxpayer may also qualify for a tax credit if the taxpayer has a child who is less than five years old and the taxpayer is temporarily unable to provide care because of the demands of a work or education schedule. The credit ranges from $250 to $1,000, depending on the age of the child and whether the care is full or part-time. This provision expires in 2025.

The provisions of this act apply to all taxable years after December 31, 2001.

This act is substantially similar to SB 595 (2000).