Senate Bill 1074 proposes to convert the additional child and dependent care tax credit into a refundable tax credit starting with the 2026 tax year. This change allows claimants to receive a refund if their credit exceeds their tax liability, which contrasts with the current nonrefundable structure. The bill includes several amendments and new provisions, such as the creation of a new section (20.835 (2) (cd)) to allocate funds for these payments and adjustments to existing sections regarding the credit's calculation and eligibility.

Key amendments include the renumbering of existing provisions and the introduction of new language that specifies the conditions under which the refundable credit will be applied. For taxable years beginning after December 31, 2025, claimants can claim 100 percent of the federal child and dependent care tax credit using specific expense limitations. Additionally, if the allowable claim exceeds the tax due, the excess will be certified for payment from the designated appropriation account, with no interest paid on these amounts.

Statutes affected:
Bill Text: 71.07(9g)(b)2, 71.07, 71.10(4)(cs), 71.10