Bill > HF495

This bill proposes to allow taxpayers to subtract certain day care costs from their taxable income, effectively reducing their tax burden. Specifically, it defines "day care costs" as money paid to a licensed child care program for child care during the tax year, where a "licensed child care program" refers to a child care center or family or group family child care that is licensed under chapter 142B. This subtraction is limited to the amount of day care expenses that exceed any dependent care assistance the taxpayer has already excluded from their gross income, as per section 129 of the Internal Revenue Code, which is a federal tax provision related to employer-provided dependent care benefits. This change would apply to tax years beginning after December 31, 2025.