This bill establishes a framework for the recapture of tax expenditures granted to businesses that violate child labor laws. Effective July 1, 2025, any tax incentives authorized by state departments will be subject to recapture if the business, or any associated contractors or third parties, is found to have violated state or federal child labor laws. The bill defines key terms such as "business," "proceeds," and "tax expenditure" in alignment with existing legal definitions.

Additionally, the bill mandates that businesses must inform the administering department of any violations within thirty days after the contest or appeal period concludes. The process for recapturing these tax expenditures will follow the procedures outlined in existing law, specifically section 15.330, subsection 2, which treats the repayment as a tax payment due to the department of revenue. Failure to repay may result in similar consequences as failing to pay taxes, and counties may also pursue recovery of property taxes lost due to tax exemptions granted to the violating business.