This bill aims to enhance the accessibility and utility of West Virginia's child care tax credit for employers by expanding the definition of eligible child care facilities. It introduces the term "employer-sponsored," which refers to licensed child care services provided by third parties financially supported by employers. The bill allows these employer-sponsored facilities to be located anywhere within the state, removing previous proximity and employee usage thresholds. Additionally, it modifies the definition of "premises of the employer" to allow child care facilities to be situated in areas reasonably accessible to the employer's workforce, rather than just within a reasonable distance from the employer's premises.

The bill also updates the tax credit structure for employers providing child care, raising the credit for capital investments in qualified child-care property from 50% to 100% of the costs incurred, allowing taxpayers to claim this credit for the first year and the following four years. It extends the carryforward period for unused credits from three years to 20 years, providing more flexibility for employers. Furthermore, the credit for operating costs is increased from 50% to 100% of the costs incurred by employers for providing or sponsoring child care for employees. The legislation includes provisions for non-profit corporations to transfer their tax credits to other taxpayers, ensuring effective utilization of these credits while emphasizing the importance of documentation and certification for eligibility.

Statutes affected:
Introduced Version: 11-21-97, 11-24-44