House Bill No. 1848, introduced by Representative 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 childcare assistance, operating childcare facilities, or reserving spots at childcare facilities for their employees' dependents. The total credit amount is capped at $30,000 per taxable year for each employer, and the overall credits available are limited to $5 million per fiscal year.

The bill also includes provisions that prevent the tax credit from reducing an employer's tax liability below zero and allows unused credits to be carried over for up to five subsequent tax years. The tax credit program is set to be effective from January 1, 2026, and will terminate on January 1, 2031. This initiative aims to support working families by alleviating childcare costs and encouraging employers to invest in childcare services.