ME LD1555

Repeals the existing employer-assisted day care tax credit program under 36 MRSA §5217 and creates a new employer-supported child care credit

Provides employers a refundable tax credit equal to 50% of child care costs incurred, up to $8,000 per child of an employee, with a maximum annual credit of $80,000 per employer

Qualifying expenses include building, operating, or subsidizing a licensed child care center, contracting with licensed child care facilities, direct payments to employees for child care, and providing child care resource and referral services

Credit takes effect for tax years beginning on or after January 1, 2026, with unused credits eligible for carry-over up to 15 years

Requires ongoing legislative review beginning in 2030 to evaluate whether the credit's policy objectives and economic benefits outweigh state revenue loss