This bill proposes significant amendments to Alaska's tax credit provisions related to education and child care. It introduces new categories of allowable contributions, including expenditures for operating child care facilities for employees' children, contributions to nonprofit child care facilities attended by employees' children, 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. The bill also updates the terminology from "day care" to "child care" and clarifies that contributions claimed as credits cannot be used for other tax credits, ensuring that benefits are not duplicated.

Furthermore, the bill amends existing laws regarding child care facilities, establishing that facilities receiving grants must prioritize children in child care assistance programs when filling spaces. It allows the Department of Health to provide additional grants to high-performing child care facilities based on specific evaluation metrics and prohibits discrimination against children based on disability or socioeconomic status. The bill also mandates the Department of Health to revise the state plan for child care assistance to align with these new regulations, with implementation contingent upon federal approval. Overall, the bill aims to enhance the quality and accessibility of child care services while supporting educational initiatives 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