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 "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. Additionally, the bill outlines the definitions of qualifying caregivers, qualifying relatives, and qualifying children, as well as the caregiving requirements necessary to claim the credit.

To qualify for the credit, caregivers must provide at least 416 hours of child care to a qualifying child, be a relative of that child, and not receive compensation for their services. They must also maintain a separate residence from the child and meet certain licensure exclusions. The bill mandates that caregivers keep records of their caregiving hours, and it stipulates that any excess credit beyond the taxpayer's liability will be refunded by the state. This new tax credit is set to take effect for taxable years beginning after December 31, 2024.