Bill > AB2673

This bill would establish a new tax credit for individuals and corporations that make qualified contributions to promote childcare, defined as care for children 12 years old or younger, for taxable years beginning on or after January 1, 2027, and before January 1, 2032. The credit would be equal to 50% of these contributions, with a maximum of $100,000 per taxpayer per year, and could be carried over for up to five years if it exceeds the taxpayer's net tax liability. Qualified contributions include donations for establishing or operating a childcare facility, creating grant or loan programs for parents needing childcare assistance, pooling funds from multiple businesses to establish a childcare facility, or funding programs that provide information and referrals for childcare. The bill also includes reporting requirements for the Franchise Tax Board to track the credit's usage and impact, with the goal of generating funding for early childcare programs and assisting those in need. This measure is considered a tax levy and will take effect immediately.

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB2673