REPORT TITLE:
Income Tax; Child Care


DESCRIPTION:
Establishes the employer-provided child care program corporate
income tax credit equal to         per cent of the taxpayer's
qualified child care program expenses.  Defines "qualified child
care program" and "qualified child care program expenses".

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           2608
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO CHILD CARE.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Chapter 235, Hawaii Revised Statutes, is amended
 
 2 by adding a new section to part VI to be appropriately designated
 
 3 and to read as follows:
 
 4      "§235-    Qualified employer-provided child care program
 
 5 credit.  (a)  This section may be cited as the "Child Care Tax
 
 6 Incentive Act of 2000".
 
 7      (b)  There shall be allowed to each taxpayer subject to the
 
 8 tax imposed by this chapter a qualified child care program credit
 
 9 determined under this section for any taxable year in an amount
 
10 equal to          per cent of the taxpayer's qualified child care
 
11 program expenses for each taxable year.
 
12      (c)  The amount of the credit for any qualified taxpayer
 
13 under subsection (b) for any taxable year shall not exceed
 
14 $          .
 
15      (d)  Definitions.  For purposes of this section:
 
16      "Qualified child care program" means a program financed in
 
17 whole or in part by the employer that assists the employees in
 
18 caring for their children.  Programs within the meaning of
 
19 "qualified child care program" include:
 

 
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                                     S.B. NO.           2608
                                                        
                                                        

 
 1      (1)  Time off policies including unpaid or paid maternity
 
 2           leave, family leave, or sick leave;
 
 3      (2)  Alternative work schedules including flexible working
 
 4           hours, flexible working arrangements, or part-time
 
 5           positions; or
 
 6      (3)  Other assistance including a child care plan, a
 
 7           cafeteria plan with an option to choose child care
 
 8           expenses, a voucher program, a salary reduction plan,
 
 9           actual child care at or near the workplace, family
 
10           child care counseling, or an information and referral
 
11           service.
 
12      "Qualified child care program expenses" means any amount
 
13 paid or incurred by an employer during the taxable year in
 
14 connection with a "qualified child care program".
 
15      (e)  If the qualified child care program credit allowed
 
16 under this section exceeds the taxpayer's net income tax
 
17 liability, the excess of credit over liability shall be refunded
 
18 to the taxpayer; provided that no refunds or payment on account
 
19 of the tax credit allowed by this section shall be made for
 
20 amounts less than $1.  All claims for tax credits under this
 
21 section, including any amended claims, must be filed on or before
 
22 the end of the twelfth month following the close of the taxable
 
23 year for which the credits may be claimed.  Failure to comply
 

 
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                                     S.B. NO.           2608
                                                        
                                                        

 
 1 with the foregoing provision shall constitute a waiver of the
 
 2 right to claim the credit.  Application for the credit shall be
 
 3 upon forms provided by the department of taxation."
 
 4      SECTION 2.  New statutory material is underscored.
 
 5      SECTION 3.  This Act shall take effect upon its approval,
 
 6 and shall apply to taxable years beginning after December 31,
 
 7 2000.
 
 8 
 
 9                           INTRODUCED BY:  _______________________