House Bill No. 1848, introduced by Schreiber, establishes a new income tax credit for employers who provide childcare assistance to their employees. The bill defines key terms related to childcare services and outlines the eligibility criteria for both employees and childcare providers. Specifically, it allows employers to claim a credit equal to 30% of their expenditures on direct childcare expenses for employees, costs associated with operating a childcare facility for employees' dependents, or contracting with a childcare facility to reserve spots for employees. The maximum credit amount that can be claimed by an employer is capped at $30,000 per taxable year, and the total credits available for use in any fiscal year is limited to $5 million.

The bill also stipulates that the credits cannot reduce a taxpayer's income tax liability to less than zero and allows for unused credits to be carried over for up to five subsequent tax years. The provisions of this act will be effective starting January 1, 2026, and will remain in effect until January 1, 2031, at which point they will cease to have legal force.