AL SB273

Creates a refundable employer tax credit equal to total eligible expenses incurred by employers for child care support, capped at $1,000,000 per employer per year, with a $15,000,000 annual aggregate limit for all employers.

Creates a refundable facility tax credit for child care providers based on quality ratings and eligible children served, ranging from $1,000 to $2,000 per eligible child monthly, capped at $25,000 per facility per year with a $5,000,000 annual aggregate limit.

Requires at least 25 percent of employer tax credits and 25 percent of facility tax credits be reserved for businesses and providers operating in rural areas.

Establishes eligibility requirements including licensed child care facilities participating in Alabama Quality STARS program and children enrolled in the state's Child Care Subsidy Program.

Effective for tax years January 1, 2024 through December 31, 2028, unless extended by the Legislature, with implementation rules required by January 1, 2024.