CA SB670

Allows a 30% tax credit against personal income tax and corporation tax for costs of establishing child care programs, constructing child care facilities, providing child care information and referral services, and contributing to qualified care plans for taxable years 2016-2020.

Credits for child care facility startup expenses capped at $50,000 per year with an option to carry over excess credits for up to 7 years; credits for employee dependent care contributions capped at $360 per dependent per year.

Requires child care facilities to operate for at least 60 consecutive months after completion; if closed within 60 months, the taxpayer must repay a prorated portion of the credit claimed.

Requires the Franchise Tax Board to report to the Legislature by January 1, 2018 on the dollar amount of credits claimed, number of facilities established, and number of children served.

All credit provisions expire and are repealed on December 1, 2021; act takes effect immediately as a tax levy.