S.F. No. 2357 - Child Care Professional Supply and Retention Credit

• Establishes a refundable tax credit for child care professionals based on their career lattice step level: $1,000 for child development associate level, $2,500 for associate's degree level, and $3,000 for bachelor's degree or higher as of December 31 of the taxable year.

• Requires eligible professionals to have a career lattice step level of six or greater and be employed at the same child care facility for at least six months of the taxable year.

• Limits claims to one child care facility per taxpayer per taxable year and requires the facility to maintain at least a one-star quality rating for at least six months of the taxable year.

• Credit amounts are subject to inflation adjustments beginning in taxable year 2023, with allocations adjusted for nonresidents and part-year residents.

• Authorizes the commissioner to refund the excess to claimants if total credits exceed tax liability, with an appropriation from the general fund to cover refunds.

• Effective for taxable years beginning after December 31, 2022.