This bill introduces a new section to chapter 57-38 of the North Dakota Century Code, establishing a tax credit for qualified employers who make child care contributions. The credit allows these employers to claim fifty percent of their aggregate child care contributions made during the taxable year, with a cap that prevents the credit from exceeding their tax liability. Additionally, passthrough entities can also benefit from this credit, with the amount distributed to partners, shareholders, or members based on their respective interests. The bill outlines specific definitions for terms such as "qualified employer," "qualified employee," and "child care contribution," ensuring clarity in the application of the credit.

Furthermore, the bill adds a new subdivision to subsection 7 of section 57-38-30.3, referencing the child care contribution credit established in this Act. The effective date for this legislation is set for taxable years beginning after December 31, 2024. This initiative aims to support employers in providing child care assistance to their employees, thereby promoting workforce participation and addressing child care costs.