This bill proposes significant amendments to Alaska's tax credit provisions related to education and child care. It introduces new categories for tax credits, allowing taxpayers to claim credits for expenditures made to operate child care facilities for their employees' children, contributions to nonprofit child care facilities, and payments made to employees to help offset their child care costs. These new provisions are added as items (8), (9), and (10) under AS 21.96.070(a) and AS 43.20.014(a). Additionally, the bill raises the cap on the total amount of credits that can be claimed from $3,000,000 to $10,000,000 for both individual taxpayers and affiliated groups, as reflected in the amendments to AS 21.96.070(d) and AS 43.20.014(d).

Furthermore, the bill enhances the framework for child care facilities by prioritizing spaces for children in child care assistance programs and allowing the Department of Health to grant funds to high-performing facilities based on specific metrics. It also clarifies definitions related to "child care facility" and "day care," ensuring compliance with state licensing requirements. The bill mandates consultation with child care providers and parents for regulatory implementation and includes provisions for federal approval of amendments to the state's child care assistance program plan, which will only take effect upon such approval. Overall, the bill aims to bolster support for educational and child care initiatives while providing clearer guidelines for eligibility and contributions.

Statutes affected:
HB0190A, AM HB 190, introduced 04/14/2025: 21.96.070, 21.09.210, 21.66.110, 43.20.014, 43.55.019, 43.56.018, 43.65.018, 43.75.018, 43.77.045, 43.20.145, 37.14.750, 14.16.200, 43.55.011, U.S.C, 47.05.030, 47.25.001, 47.25.095, 47.05.085, 11.56.210, 47.25.011, 47.25.021, 47.25.031, 47.25.041, 47.25.051, 47.25.071