Connecticut House Bill HB06550

Connecticut 2017 Regular Session

• Introduced: 1/24/17
• Refer: 1/24/17

Caption

An Act Providing A State Income Tax Credit For Child Care Costs.

Impact

If enacted, HB 06550 would amend Chapter 229 of the general statutes to implement the new tax credit, potentially resulting in a significant reduction in tax liabilities for qualifying families. This could encourage more parents, especially those with lower incomes, to seek employment or maintain their current jobs without the added stress of exorbitant child care costs. The financial relief provided by this credit may also stimulate local economies by increasing consumer spending among families benefiting from the tax break.

Summary

House Bill 06550 aims to alleviate the financial burden on families by providing a state income tax credit for child care costs. Modeled after the existing federal tax credit for dependent child care, this bill seeks to support families struggling with high day care expenses. It recognizes the critical role that affordable child care plays in enabling parents to participate in the workforce and contribute to the economy. The proposed amendments would allow families to receive substantial tax relief, directly impacting their disposable income and financial stability.

Contention

The bill may face scrutiny and debate regarding its implications for state revenue and budget allocations. Critics could argue that the introduction of such tax credits may strain the state’s finances, proposing that funding should be prioritized for broader child care solutions rather than tax incentives. Proponents, however, would likely emphasize the importance of supporting working families and the potential long-term economic benefits of reducing reliance on welfare programs through enhanced employment opportunities facilitated by affordable child care.