The Affordable Childcare Act of 2025 aims to establish a new income tax credit for employers who assist their employees with childcare costs, replacing the existing tax credit for employer-operated childcare facilities. The bill introduces a new section to the Arkansas Code, which allows businesses to claim a tax credit for expenses related to providing childcare services for their employees' dependent children. The credit amounts vary based on the type of childcare assistance provided, with businesses eligible for up to 30% of childcare service costs or 50% for establishing a childcare facility, subject to certain limits.

Additionally, the bill repeals previous sections of the Arkansas Code that outlined the old tax credit system for employer-provided childcare. The new provisions will take effect for tax years beginning on or after January 1, 2025, ensuring that the updated tax incentives are available to businesses looking to support their employees with childcare needs.