DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of
the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of
the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Thompson HB No. 698
Abstract: Requires the department, in collaboration with BESE, to make recommendations for
legislation no later than Jan. 1, 2015, to align the tax credits in present law with the Early
Childhood Care and Education Network.
Present law establishes school readiness tax credits in order to promote quality child care for
children five years of age or less. Present law requires the Dept. of Children and Family Services
(DCFS) to determine the eligibility of child care facilities, child care providers, child care
directors, and staff for receipt of tax credits.
Proposed law retains present law but deletes references to DCFS and adds a definition for
"department" which shall mean the state agency designated as the state administrator of the Child
Care Development Fund. Further provides that the department shall be responsible for
distributing and managing tax credits associated with the fund.
Proposed law adds definitions for "Tiered Kindergarten Readiness Improvement System", "The
Early Childhood Care and Education Network", and "Eligible early childhood learning centers".
Present law provides for an individual income tax credit for child care expenses based on the
quality rating of the child care facility which the child attends. The amount of the credit varies
depending on the quality rating of the child care facility.
Present law provides for a refundable income or corporation franchise tax credit for child care
providers. The amount of the credit shall be equal to an amount based upon the average monthly
number of children who either participate in the Child Care Assistance Program or who are foster
children in the custody of DCFS, and who are attending a child care facility or facilities operated
by the child care provider, multiplied by an amount which shall be based upon the quality rating
of each child care facility operated by the child care provider.
Present law provides for a refundable individual income tax credit for eligible child care directors
and eligible child care staff. The amount of the credit varies based upon the qualifications of the
provider.
Present law provides for a refundable income tax or corporation franchise tax credit for eligible
business child care expenses supported by a business. The amount of the credit shall be based on
a percentage of eligible business child care expenses depending upon the quality rating of the
child care facility to which the expenses are related or the quality rating of the child care facility the child attends. Present law provides for an additional refundable income or corporation
franchise tax for the payment by a business of fees and grants to child care resource and referral
agencies not to exceed $5,000 per tax year.
Proposed law requires the department, in collaboration with the State Board of Elementary and
Secondary Education (BESE), to make recommendations for legislation no later than Jan. 1,
2015, to align the tax credits provided for in present law with the Early Childhood Care and
Education Network which promotes kindergarten readiness in eligible early childhood learning
centers and which evaluates eligible centers utilizing the letter grade system adopted through
rules promulgated by BESE for determining the success of an eligible center.
Effective July 1, 2013.
(Amends R.S. 47:6102, 6103(A)(1) and (2), and 6109(A); Adds R.S. 47:6103(C))
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Ways and Means to the original
bill.
1. Adds definitions for the Tiered Kindergarten Readiness Improvement System, the
Early Childhood Care and Education Network, and eligible early childhood learning
centers.
2. Adds requirement that the Department of Revenue work in consultation with the
department to promulgate rules and regulation to implement present law.
3. Adds requirement that the department, in collaboration with BESE, make
recommendations for legislation no later than Jan. 1, 2015, to align the tax credits
authorized in present law with the Early Childhood Care and Education Network.
4. Deletes provisions which repealed the tax credits in present law in favor of
establishing a school readiness expense tax credit.