This bill proposes significant updates to current statutes concerning child care and insurance premium tax credits in Arizona. It introduces new sections, such as 20-224.08 and 41-1970, which establish a tax credit for insurers based on qualified child care expenditures, allowing a credit of 25% of these expenditures, capped at $100,000. The bill also outlines an application process and stipulates that any unused credit exceeding the insurer's state premium tax liability can be carried forward for up to five years. Additionally, it establishes an out-of-school time grant program to enhance child care access for children aged five to twelve. In terms of modifications, the bill repeals certain sections and clarifies existing language regarding the tax credit process. It ensures that insurers are not liable for regulatory actions if they calculate fire insurance premium taxes in good faith and emphasizes electronic submissions for reports and payments. The bill also introduces a tiered repayment structure for taxpayers who close or dispose of their interest in qualified child care facilities, defines key terms, establishes reporting requirements, and appropriates $3 million annually for the grant program, with a sunset provision to repeal the new section after June 30, 2030. Overall, the bill aims to streamline the tax credit process while enhancing child care support for working families.

Statutes affected:
Introduced Version: 20-224, 20-224.08, 41-1970, 43-222, 43-1080, 43-1166, 20-206, 9-951, 35-146, 35-147, 20-837, 20-1010, 20-1060, 9-952, 9-972, 20-1566, 20-224.01, 20-1097.07, 20-224.03, 20-224.04, 20-224.06, 20-224.07, 20-224.05, 20-416, 20-230, 35-190, 43-1079.01, 43-1088, 43-1089.04, 43-1167.01, 43-1175, 43-1072.02, 43-1074.02, 43-1075, 43-1076.01, 43-1077, 43-1078, 43-1083, 43-1083.02, 43-1162, 43-1164.03, 43-1183, 43-1073, 43-1082, 43-1085, 43-1086, 43-1089, 43-1089.01, 43-1089.02, 43-1089.03, 43-1164, 43-1165, 43-1181, 43-1074.01, 43-1168, 43-1170, 43-1178, 43-1073.01, 43-1081.01, 43-1083.03, 43-1084, 43-1164.04, 43-1164.05, 43-1184, 2025-2026, 20-244.08, 43-1130