HB4765 Summary

• Creates an income tax credit for custodians of qualifying pupils (under age 21) to compensate for school districts failing to offer full-time in-person instruction during the regular school year, effective for tax years beginning January 1, 2022.

• Eligible expenditures include costs for online learning materials (up to $500), child care and tutoring for children under 15 (up to $5,000 per household), and COVID-19 related expenses like testing and quarantine costs (up to $3,000).

• Provides an additional $75 per week credit (not to exceed $2,000 annually) for eligible teachers who are also custodians of qualifying pupils unable to attend in-person instruction due to COVID-19 related orders.

• Allows employers a credit equal to 100% of eligible expenditures paid on behalf of employee custodians, capped at $2,000 per employee per year plus 50% of maximum unemployment insurance payments.

• Reduces eligible expenditures by 25% for taxpayers with adjusted gross income over $150,000 (individuals) or $300,000 (joint filers); exempts the credit from automatic sunset provisions and takes effect immediately.