This bill proposes the establishment of a refundable tax credit for family members who provide child care, specifically targeting individuals who meet the criteria of a "qualifying caregiver." Under the new section [290.0696], a qualifying caregiver can receive a $2,000 credit against their tax liability if they provide at least 416 hours of child care to a qualifying child under the age of six, without receiving compensation. The bill outlines specific definitions for qualifying caregivers, relatives, and children, as well as caregiving requirements that must be met to claim the credit.

Additionally, the bill includes provisions for the credit to phase out based on adjusted gross income, with thresholds set at $100,000 for married couples filing jointly and $50,000 for other taxpayers. If the credit exceeds the taxpayer's liability, the excess amount will be refunded, with necessary funds appropriated from the general fund. The new law will take effect for taxable years beginning after December 31, 2024.