Bill > HB1019

This bill creates the Affordable Childcare Act of 2025, which establishes a new income tax credit system for businesses that help their employees with childcare expenses. The bill provides tax credits for employers in three main ways: 30% of expenses for purchasing childcare services or finding childcare for employees, 50% of costs for establishing a new childcare facility (30% in subsequent years), and 50% of payments to organizations that help connect employees with childcare services. Employers can receive up to $30,000 in tax credits for the first two categories and up to $45,000 for facility establishment and organizational payments in a single tax year. To qualify, childcare must be provided by a licensed facility under the Childcare Facility Licensing Act. If the tax credit exceeds the business's tax liability, the excess will be refunded. This bill also repeals two existing sections of tax code related to employer-provided childcare credits, effectively replacing the old system with this new, more comprehensive approach. The new tax credit provisions will take effect for tax years beginning on or after January 1, 2025.

Budget and Finance

https://www.arkleg.state.ar.us/Bills/Detail?id=hb1019&ddBienniumSession=2025%2F2025R