The bill proposes significant amendments to Alaska's tax credit provisions related to education and child care. It introduces new provisions that allow taxpayers to claim credits for operating 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 the total amount of credits that can be claimed from $3,000,000 to $10,000,000 for both individual taxpayers and affiliated groups, aiming to encourage greater financial contributions towards educational and child care initiatives. The terminology is updated from "day care" to "child care," reflecting a modern understanding of these services.

Furthermore, the bill mandates that child care facilities receiving grants prioritize spaces for children in child care assistance programs, ensuring a minimum availability of 15 percent of spaces for eligible children. It also allows the Department of Health to provide grants to high-performing child care facilities based on specific evaluation metrics and prohibits discrimination based on disability or socioeconomic status. The bill includes repeals of certain outdated sections and requires federal approval for some amendments, with a deadline set for January 1, 2027, or a determination that such approval is unnecessary. Overall, the bill aims to enhance support for child care services and improve educational opportunities 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