The bill amends West Virginia tax laws to introduce tax credits for employers who provide child care services to their employees. It defines key terms such as "employer sponsored child-care facility" and "qualified child-care property," allowing employers to claim a tax credit equal to 50% of the operational costs of these facilities, as well as credits for capital investments in child-care property over a five-year period. The legislation also includes a recapture mechanism for tax credits if certain events occur, such as the sale of qualified property. Additionally, it mandates the Department of Human Services to oversee the implementation of these provisions and requires electronic filing of attendance records by child-care providers.

The bill further enhances child care support by limiting the capital investment credit and allowing taxpayers to carry forward unused credits for three years, ensuring that total credits do not exceed 100% of their income tax liability. It also addresses child care subsidies by requiring the Department of Human Services to implement policies that gradually phase out assistance as family income rises, thereby mitigating the "cliff effect." The provisions are set to take effect on July 1, 2026, and include annual reporting on the effectiveness of the child care subsidies and tax credits.

Statutes affected:
Introduced Version: 11-21-97, 11-24-44
Committee Substitute: 49-2-113a, 49-2-1101
Engrossed Committee Substitute: 11-21-97, 11-24-44, 49-2-121, 49-2-113a, 49-2-1101
Enrolled Committee Substitute: 11-21-97, 11-24-44, 49-2-121, 49-2-113a, 49-2-1101