Senate Bill No. 233, introduced by Senator Edmonds, proposes significant changes to the School Readiness Tax Credit, which will be renamed to the Workforce Child Care Tax Credit. The bill amends the definitions and provisions related to eligible business child care expenses, increasing the annual caps for various expenses. Specifically, the cap for construction, renovation, or major repairs of eligible child care facilities will rise from $50,000 to $100,000, while the cap for payments made to child care facilities for employee services will increase from $5,000 to $10,000. Additionally, the cap for purchasing child care slots will also double from $50,000 to $100,000.

The bill further modifies the percentage of tax credits available based on the quality rating of child care facilities. For example, the credit for five-star facilities will increase from 20% to 50%, and similar increases will apply to four-star, three-star, and two-star facilities. Furthermore, a new provision will cap the total amount of credits granted in any calendar year at $5 million. These changes will take effect for taxable periods beginning on or after January 1, 2026.

Statutes affected:
SB233 Original: 47:6102(7), 47:6107(A)(1)
SB233 Engrossed: 47:6102(7), 47:6107(A)(1)