SB 1005 - This act establishes the Affordable Child Care for Families Tax Credit Act. For all tax years beginning on or after January 1, 2021, this act creates a tax credit in an amount equal to a percentage of the amount of a taxpayer's federal child and dependent care tax credit. The amount of the credit shall increase in ten percent increments per tax year, beginning with ten percent in the 2021 tax year until the credit reaches thirty percent for all tax years beginning on or after January 1, 2023. Taxpayers with a federal adjusted gross income in excess of $50,000 if filing single, head of household, or widowed, or $80,000 if married filing combined shall not be eligible for the credit.
The tax credits shall be applied to a taxpayer's Missouri income tax liability after all reductions for other credits for which the taxpayer is eligible have been applied. If the tax credit exceeds the amount of the taxpayer's tax liability, the excess amount shall be refunded.
The Department shall prepare an annual report regarding the tax credit established by this act containing certain information as described in the act.
JOSH NORBERG