LCO No. 2646 1 of 2
General Assembly Committee Bill No. 92
January Session, 2021
LCO No. 2646
Referred to Committee on COMMITTEE ON CHILDREN
Introduced by:
(KID)
AN ACT ESTABLISHING A TAX CREDIT FOR EMPLOYERS THAT
MAKE PAYMENTS TOWARD CHILD CARE COSTS OF EMPLOY EES.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) (Effective July 1, 2021, and applicable to income years 1
commencing on or after January 1, 2022) (a) As used in this section: 2
(1) "Eligible child care cost" means the expense incurred by a qualified 3
employee for child care services provided by a child care center or group 4
child care home, as such terms are described in section 19a-77 of the 5
general statutes; and 6
(2) "Qualified employee" means any person who works and resides 7
in the state. 8
(b) (1) For income years commencing on or after January 1, 2022, an 9
employer that makes a payment to or on behalf of a qualified employee 10
for an eligible child care cost of such qualified employee may claim a 11
credit against the tax imposed under chapter 207 or 208 of the general 12
statutes. Such credit shall be equal to fifty per cent of the amount of the 13
payment made during the income year by such employer for an eligible 14
child care cost and shall not exceed two thousand five hundred dollars 15
Committee Bill No. 92
LCO No. 2646 2 of 2
for each qualified employee for whom such employer makes such 16
payment. An employer claiming a credit under this section shall not 17
claim any other credit against the employer's tax liability under any 18
provision of the general statutes for the same payment of an eligible 19
child care cost. 20
(2) An employer may claim the credit under subdivision (1) of this 21
subsection for a payment made during the part of the income year that 22
the qualified employee worked and resided in the state, provided a 23
qualified employee who worked and resided in the state for any part of 24
a month shall be deemed to have worked and resided in the state for the 25
entire month. 26
(c) An employer that claims the credit under subsection (b) of this 27
section shall provide any documentation required by the Commissioner 28
of Revenue Services in a form and manner prescribed by the 29
commissioner. 30
This act shall take effect as follows and shall amend the following
sections:
Section 1 July 1, 2021, and
applicable to income years
commencing on or after
January 1, 2022
New section
Statement of Purpose:
To provide a tax credit to employers that make payments for the child
care costs of employees who reside in the state.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
underlined.]
Co-Sponsors: SEN. ANWAR, 3rd Dist.
S.B. 92