The proposed bill aims to support employers in providing child care assistance to their employees by establishing a tax credit under the business and occupation and public utility tax codes. It introduces a five-year pilot program that allows employers to claim a tax credit equal to 50% of the amount paid to registered child care providers for the care of their employees' dependents. Initially, from January 1, 2027, to December 31, 2028, only employers with fewer than 100 full-time equivalent employees or those participating in a child care consortium can claim this credit. Starting January 1, 2029, eligibility will expand to any qualifying person. The total credit amount is capped at $50,000 per claimant per year, with an overall statewide limit of $5 million annually.

Additionally, the bill includes provisions for the administration of the tax credit, such as record-keeping requirements and the necessity for electronic filing. It also establishes a performance statement to evaluate the effectiveness of the tax preferences, with the potential for extending the program if the number of child care slots supported by employers increases in the first two years. The sections of the bill will expire on January 1, 2033, and it emphasizes the importance of pooling resources through child care consortiums to enhance access to affordable child care, particularly for small and mid-sized businesses.