House Bill 398: Child Care Act

• Reenacts child care tax credit with tiered percentages based on dependent age (7-25 years, 12-18 years, 6-12 years, and other qualifying individuals) and adjusted gross income, effective for taxable years beginning January 1, 2024.

• Appropriates $200,000,000 in recurring funds annually for the 2023-2025 biennium to expand NC Pre-K program by 32,000 slots to cover all eligible 4-year-old children.

• Appropriates $35,000,000 in recurring funds annually for the 2023-2025 biennium to increase subsidized child care funding.

• Requires public schools to provide lunch at no cost to students through State Board of Education allocations to school food authorities based on nutritional quality, local sourcing, and student eligibility factors; appropriates $105,000,000 for 2023-2024 and $3,166,600 to address existing nutrition program debt.

• Appropriates $10,000,000 in nonrecurring funds to community colleges with public child care programs for 2023-2024; requires colleges without programs to report feasibility by March 31, 2024, and mandates Department of Public Instruction to report on high school child care apprenticeship program feasibility by December 31, 2024.