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ME LD203

ME LD203
An Act to Provide an Income Tax Credit for Employer-supported Child Care


summary

Introduced
01/14/2025
In Committee
01/14/2025
Crossed Over
Passed
Dead
05/06/2025

Introduced Session

132nd Legislature

Bill Summary

This bill repeals the law governing the employer-assisted day care income tax credit, which by its own terms does not apply to tax years beginning on or after January 1, 2016. The bill authorizes, for tax years beginning on or after January 1, 2026, a refundable tax credit for an employer that pays or provides in-kind resources for child care for the children of its employees. The amount of the annual credit is 50% of the amount expended or $3,000 per child, whichever is lower. The bill also provides that the credit is subject to ongoing legislative review.

AI Summary

This bill repeals an existing law governing employer-assisted day care tax credits and establishes a new refundable tax credit for employers who support child care for their employees' children, effective for tax years beginning on or after January 1, 2026. Under the new provisions, employers can receive a tax credit equal to the lesser of 50% of their child care service costs or $3,000 per child, with the credit applicable to expenses such as building, staffing, operating, or subsidizing a licensed child care center, contracting with child care facilities, or providing dependent care assistance programs. The bill defines "providing child care services" broadly to include direct care center expenses, employee reimbursements for child care, and child care resource referral services. Any unused credit can be carried forward for up to 15 years, and beginning in 2030, the credit will be subject to ongoing legislative review to evaluate its public policy objectives and economic benefits against the state revenue loss. The legislation aims to incentivize employers to support working parents by helping offset the cost of child care.

Committee Categories

Budget and Finance

Sponsors (5)

Last Action

Pursuant to Joint Rule 310.3 Placed in Legislative Files (DEAD) (on 05/06/2025)

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