AR HB1867

Creates a temporary tax credit for "coronavirus-related childcare expenses" incurred due to COVID-19 emergency closures that made childcare necessary for employment purposes.

Allows individual or head of household filers with adjusted gross income of $75,000 or less to claim 100% of coronavirus-related childcare expenses as a tax credit against income tax.

Allows married-filing-jointly taxpayers with adjusted gross income of $150,000 or less to claim 100% of coronavirus-related childcare expenses as a tax credit.

Permits taxpayers to claim the credit on their 2022 tax return for childcare expenses incurred in 2020 or 2021; credit amount cannot exceed income tax due in that year.

Tax credit is effective for tax years beginning January 1, 2020 and expires December 31, 2022; declares an emergency to make the act immediately effective upon Governor approval.