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AR HB1435
Bill
Status
5/5/2025
Primary Sponsor
Brandon Achor
Click for details
AI Summary
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Employers may claim income tax credits for eligible childcare expenses including construction/renovation of facilities, payments to licensed childcare facilities for employee services, and up to $2,500 per employee for dependent care assistance contributions, with a maximum credit of $500,000 per employer annually
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Total aggregate employer childcare credits capped at $15 million per calendar year, with $3.75 million reserved for small businesses (fewer than 250 employees, under $5 million revenue) and rural employers
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New income tax credit for licensed childcare providers calculated at $1,500 multiplied by average monthly enrolled children (age 12 or younger), capped at $25,000 per provider annually
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Total aggregate childcare provider credits capped at $5 million per calendar year, with $1.125 million reserved for providers in rural areas (outside cities with population over 25,000)
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Tax-exempt organizations under 26 U.S.C. § 501(c)(3) may transfer or sell credits; provisions effective for tax years beginning January 1, 2026
Legislative Description
To Amend The Law Concerning Income Tax Credits For Child Care; To Amend The Income Tax Credit For Employer-provided Child Care; To Provide An Income Tax Credit For Licensed Childcare Providers; And To Declare An Emergency.
Last Action
Died in House Committee at Sine Die adjournment.
5/5/2025