HB 1203 Summary

• Establishes an employer child care tax credit allowing employers to deduct a percentage of child care operational costs or employer-sponsored child care expenses from net income tax liability.

• Limits the annual tax credit to 50 percent of the taxpayer's income tax liability, with unused credits carryable forward for five years.

• Provides an additional 10-year depreciation credit for qualified child care property (real and personal property), allowing taxpayers to claim 10 percent per year over ten years for property purchased or placed in service after December 31, 1999.

• Requires employers to certify employee names, child care provider information, and other details to the Department of Taxation; includes recapture provisions if child care property is disposed of within 14 years, with recapture percentages declining from 100 percent to zero over that period.

• Effective June 30, 3000, applying to taxable years beginning after December 31, 2022 (note: effective date appears to contain a typographical error).