Bill > LD1555

This bill repeals an existing employer-assisted day care tax credit program and establishes a new, more comprehensive tax credit for employers who support child care for their employees' children. Starting in tax year 2026, employers can receive a refundable tax credit equal to 50% of their child care-related expenses, up to a maximum of $8,000 per child or $80,000 total annually. The bill defines "providing child care services" broadly, including expenses related to building, staffing, operating, or subsidizing child care centers, contracting with licensed facilities, or providing direct payments to employees for child care through dependent care assistance programs. Employers can carry unused credits forward for up to 15 years. Importantly, the bill mandates a legislative review beginning in 2030 to evaluate the policy's effectiveness by assessing whether the public policy objectives and economic benefits of the tax credit justify the state's revenue loss. This approach aims to incentivize employers to support working parents by helping offset the significant costs of child care.

Budget and Finance

https://legislature.maine.gov/legis/bills/display_ps.asp?LD=1555&snum=132