48-7-29.28. Tax credit for eligible child care payments.

As used in this Code section, the term:#

1. (1)

   “Child care facility” means a child care learning center or family child care learning home that is permitted, licensed, or commissioned by the Department of Early Care and Learning pursuant to Chapter 1A of Title 20.#

2. (2)

   “Eligible child care payments for employees” means payments:#

   1. (A)

      Made directly to a child care facility in the name and for the benefit of an employee whose child is enrolled in such facility and is under the age of six;#

   2. (B)

      Which total at least $1,000.00 per taxable year for each employee for which such payments are made; and#

   3. (C)

      That are made for an employee in addition to, and not in lieu of, any other compensation and benefits for such employee.#

For taxable years beginning on or after January 1, 2026, a taxpayer shall be allowed a credit against the tax imposed under this article for eligible child care payments for employees in an amount:#

1. (1)

   Equal to $500.00 per child for which such payments are made per taxable year; or#

2. (2)

   Equal to $1,000.00 per child for which such payments are made if it is the first taxable year in which the taxpayer provided eligible child care payments for employees and prior to such taxable year the taxpayer did not pay for, reimburse for, or otherwise subsidize the costs of child care for employees.#

The aggregate amount of tax credits allowed pursuant to this Code section shall not exceed $20 million per year.#

In no event shall the total amount of the tax credit under this Code section for a taxable year exceed the taxpayer’s income tax liability. Any unused tax credit shall not be allowed to be carried forward to apply to the taxpayer’s succeeding years’ tax liability. No such tax credit shall be allowed the taxpayer against prior years’ tax liability.#

A taxpayer seeking to claim a tax credit pursuant to this Code section shall submit an application to the department for preapproval of such tax credit in the manner specified by the department. The department shall preapprove such application within 30 days based on the order in which properly completed applications were submitted. In the event that two or more applications were submitted on the same day and the amount of funds available will not be sufficient to fully fund the amount requested, the department shall prorate the available funds between or among the applicants.#

The commissioner shall promulgate any rules and regulations necessary to implement and administer the provisions of this Code section.#

This Code section shall stand repealed and reserved on December 31, 2030.#