Bill > SB233

This bill makes significant changes to the School Readiness Tax Credit, renaming it the Workforce Child Care Tax Credit and modifying its provisions to incentivize businesses supporting quality child care. The bill increases the maximum eligible business child care expenses for tax credits, raising the limit for facility construction, renovation, and equipment from $50,000 to $100,000 per year, and increasing employee child care service payments from $5,000 to $10,000 per child annually. The tax credit percentages are restructured to provide higher credits for higher-quality child care facilities, with five-star facilities now eligible for a 50% credit (up from 20%), four-star facilities at 40% (up from 15%), and three-star facilities at 30% (up from 10%), while eliminating credits for two-star facilities. The bill also introduces a new annual credit cap, starting at $1 million in 2026 and potentially increasing by $1 million each year if 80% of the previous year's cap is used, with a maximum cap of $5 million. Beginning in 2027, businesses must apply for the tax credit between January and February, with applications approved on a first-come, first-served basis, and pro-rated if total applications exceed available credits. These changes aim to encourage businesses to invest in and support high-quality child care services for their employees.

Budget and Finance

https://www.legis.la.gov/legis/BillInfo.aspx?s=25rs&b=SB233&sbi=y