Bill > HB1177

This bill expands eligibility and scope for the employer child care expenditure income tax credit, which is a tax credit for businesses that incur costs related to providing child care for their employees. Specifically, it increases the maximum number of employees a business can have to qualify for this credit, raising it from 100 to 500 individuals. The bill also clarifies that "qualified expenditures" for this credit now explicitly include the operating costs of a child care facility used by employees, as well as costs incurred through contracts with child care facilities or intermediary organizations that provide child care services to employees. Additionally, it allows redevelopment commissions, which are local government bodies responsible for urban renewal and economic development, to use funds collected within tax increment financing (TIF) districts to support the construction or expansion of child care facilities. TIF districts are areas where property tax revenue increases are used to fund redevelopment projects. The bill also repeals provisions related to "recapture events," which previously required taxpayers to repay a portion of the tax credit if the child care facility ceased to operate as intended within a certain timeframe.