This bill proposes the establishment of a refundable tax credit for family members who provide child care, specifically targeting individuals who are qualifying caregivers. Under the new section [290.0696], a qualifying caregiver can receive a $2,000 credit against their tax liability, with specific income thresholds for eligibility. The credit phases out for individuals with adjusted gross incomes exceeding $50,000 or $100,000 for married couples filing jointly. The bill outlines definitions for qualifying caregivers, relatives, and children, as well as the caregiving requirements necessary to qualify for the credit, such as providing at least 416 hours of care without compensation and maintaining a separate residence from the qualifying child.

Additionally, the bill stipulates that if the credit exceeds the taxpayer's liability, the excess amount will be refunded, with necessary funds appropriated from the general fund. The provisions of this bill will take effect for taxable years beginning after December 31, 2024.