SB 250 - This act authorizes tax credits for child care payments. After January 1, 2000, taxpayers may take a tax credit of ten percent of the amount spent for child care services for children of the taxpayer's employees. No tax credit will be allowed if the employer fails to provide subsidized child care services on a sliding scale, based on need, to at least twenty- five percent of the children served. Tax credits will also not be allowed if the employer discriminates among his or her employees or does not license the child care facility.

This act also allows individual taxpayers to take a tax credit of $400.00 if the taxpayer receives no public assistance and the taxpayer's qualified spouse cares for their child or the spouse's child. A taxpayer may also take a tax credit in specific amounts if the taxpayer makes qualified child care service payments. Receipts should be filed with the taxpayer's income tax return.

If the amount of tax credit taken exceeds the taxpayer's liability, the difference will not be refunded or carried over. The Director of the Department of Revenue will be responsible for developing rules and regulations to administer the provisions of this section.

In addition, this act creates the "Tobacco Settlement Trust Fund," in which all moneys received by the state as the result of any award or settlement relating to tobacco products will be deposited. All moneys in the trust fund will be expended only for the purpose of funding the income tax credit for child care. The provisions of this section will expire on December 31, 2023.
ERIN MOTLEY