Tax Credit for Starting Licensed Home Child Care
This act introduces a new refundable tax credit of up to $5,000 for individuals establishing licensed family child care providers. The goal is to increase access to child care services and provide financial support for new facilities. Citizens can use this credit to cover initial expenses like licensing fees, supplies, insurance, and equipment.
Key points
New tax credit up to $5,000 for startup expenses of licensed family child care providers.
Eligible expenses include licensing fees, supplies (diapers, food, toys), liability insurance, fencing, playground equipment, furniture, employee salaries (excluding the taxpayer), computers, professional training, and home renovations required for licensure.
To qualify, the provider must be state-licensed or registered, primarily offer care at the taxpayer's residence, and care for at least two non-family children for a significant part of the year.
The credit is a one-time benefit; taxpayers cannot claim it in subsequent years or for expenses already deducted elsewhere.
The provisions will apply to expenses paid or incurred after the enactment date and will sunset after 7 years.
Expired
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