AL HB381

Establishes refundable tax credits for employers providing childcare to employees' children, equal to 50% of eligible expenses, capped at $12,000 annually per employee (up to 50 employees) and $15,000,000 total annually.

Creates refundable tax credits for childcare facility owners based on the number of eligible children attending and facility quality rating, ranging from $1,000 to $2,000 per child monthly, capped at $25,000 per facility and $5,000,000 total annually.

Requires at least 25% of employer tax credits to be reserved for small businesses and rural employers, and 25% of facility credits for rural childcare providers.

Applies to tax years beginning January 1, 2025 through December 31, 2027, unless extended by the Legislature, with credits awarded on a first-come, first-served basis.

Requires Department of Revenue to adopt rules by January 1, 2025 to implement the credits and directs future legislative review of the program's effectiveness on workforce participation before reauthorization.