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. Additionally, the bill raises the cap on total credits that can be claimed from $3,000,000 to $10,000,000 for both individual taxpayers and affiliated groups, thereby encouraging greater investment in educational and child care programs. The terminology is updated from "day care" to "child care" to reflect modern understanding, and clearer guidelines for the administration of child care assistance programs are established.

Moreover, the bill outlines specific requirements for child care facilities receiving grants, ensuring priority for children in child care assistance programs and mandating that a minimum percentage of spaces be available for eligible children. It also prohibits discrimination based on a child's disability or socioeconomic status and clarifies definitions related to child care facilities. Several sections of existing law are repealed, and the bill includes provisions for federal approval of amendments to the state's child care assistance program plan, with an effective date contingent upon such approval by January 1, 2027. Overall, the bill aims to enhance support for educational initiatives and child care services, promoting better access and quality for families in Alaska.

Statutes affected:
SB0171A, AM SB 171, 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