Raised Bill No. 305, introduced by the Committee on Higher Education and Employment Advancement (HED), aims to implement the recommendations of the Connecticut Health and Educational Facilities Authority (CHEFA). The bill introduces a new program to support child care facilities located in "child care deserts," defined as census tracts with a significant number of children under five but insufficient child care facilities. The program, managed by the CHEFA Community Development Corporation, will provide financial assistance to child care facilities for construction, renovation, acquisition, and operational needs. Applications for financial assistance can be submitted by child care centers or fiscal agents, and the corporation will review these applications based on established written procedures.

Additionally, the bill introduces a tax credit for taxpayers who make cash contributions to the CHEFA Community Development Corporation for the program. The credit is set at seventy-five percent of the taxpayer's contribution and can be claimed in the income year the contribution is made. The credit is also transferable up to three times. There is a cap of $7.5 million on the aggregate amount of tax credits that can be reserved by the corporation in any fiscal year. The credit cannot exceed the taxpayer's tax due and any unused credit can be carried forward for five years. The bill specifies that Section 1 will become effective on July 1, 2024, and Section 2 will be effective on January 1, 2025, applicable to income years commencing on or after January 1, 2025.