HB20B-1018 Summary

• Establishes two separate income tax credits for the 2020 and 2021 tax years to provide relief for taxpayers affected by COVID-19 school closures during the 2020-21 school year.

• First credit allows taxpayers with qualified children whose schools suspended in-person learning for at least 4 consecutive weeks to claim up to $2,000 per year (maximum $2,000 combined per child) for documented costs directly related to the closure.

• Second credit allows taxpayers to claim up to $2,000 per year for income lost when they were unable to work because their child's school or daycare center suspended in-person services for at least 4 consecutive weeks.

• A taxpayer may claim only one of the two credits; unused credits may be carried forward for 3 years but cannot be refunded; schools and daycare centers must provide statements within 60 days confirming the number of weeks service was suspended.

• Both credits expire December 31, 2025; eligible taxpayers must retain receipts or income records and provide them to the Department of Revenue upon request.