Personal Income Tax Law: Corporation Tax Law: credit: childcare.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Revenue and Taxation
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill creates a state tax credit for contributions made to promote childcare. Individuals can claim a credit of up to 50% of qualified childcare contributions, with a maximum of $100,000 per taxpayer per year, beginning in 2027. The credit is available for contributions to establish or operate childcare facilities, support childcare programs, or provide information about childcare services. The bill also requires reporting on the use of these credits to ensure they are achieving their intended goals.
Key provisions
- Allows a 50% credit against state taxes for qualified childcare contributions.
- The maximum credit amount is $100,000 per taxpayer per year.
- Qualified contributions include donations to establish or operate childcare facilities and programs.
- The credit is available for contributions to grant or loan programs for childcare assistance.
- Contributions to childcare facilities where the taxpayer has a financial interest are not eligible.
- Excess credits can be carried over for up to five years.
- The Franchise Tax Board must collect documentation and prepare annual reports on credit usage.
Who is affected
- Taxpayers
- Childcare providers
- Parents of young children
- Businesses
- The Franchise Tax Board
Notable changes
- Establishes a new tax credit for childcare contributions.
Bill text
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Sponsors
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1 on record
Primary sponsor
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