HB 1143 Summary

• Establishes a refundable state income tax credit for child and dependent care expenses related to gainful employment, effective for taxable years beginning after December 31, 2012.

• Credit amount equals 50% of the applicable percentage multiplied by eligible employment-related expenses, as defined under federal tax code Section 21.

• Individuals and married couples with federal adjusted gross income exceeding $45,000 are ineligible for the credit.

• Excess credit amounts that surpass the taxpayer's adjusted gross income tax liability are refundable to the taxpayer.

• Taxpayers must claim the credit according to departmental procedures and submit required documentation for credit calculation.