HB 18-1208 Summary

• Limits the existing child care expenses tax credit to tax years 1996-2018 and creates a new expanded credit for tax years beginning January 1, 2019 and later.

• New credit applies only to resident individuals with federal adjusted gross income of $60,000 or less who claim a federal child care expenses credit.

• New credit equals 50 percent of the federal child care expenses credit claimed on the individual's federal tax return.

• Excess credits that exceed income taxes due are refunded to the individual rather than carried forward to future years.

• Individuals receiving child care assistance from the state department of human services cannot claim the credit except for unreimbursed out-of-pocket expenses resulting in a federal credit.