Establishing a child care tax credit in the Commonwealth
Impact
The implementation of S1814 would specifically alter the tax code within Chapter 62 of the General Laws. By introducing a tax credit targeted at child care expenses, the bill seeks to alleviate the financial burden on families that utilize licensed child care providers. This could lead to increased accessibility to child care services, fostering an environment where more families can afford quality care and thereby promoting child development and family stability.
Summary
Bill S1814, known as 'An Act establishing a child care tax credit in the Commonwealth', aims to provide financial relief to families by creating a tax credit for child care expenses. This legislation allows taxpayers, whether filing as single, married jointly, or head of household, to claim a credit against their state tax liability for expenses incurred in licensed child care services. The maximum allowable credit is set at three thousand dollars per child for the tax year, incentivizing families to utilize licensed providers for child care services.
Contention
While the bill presents beneficial intentions for family support, discussions around its implementation could highlight concerns regarding the qualifications and accessibility of licensed providers. Critics may argue that not all families have equal access to licensed care, which could disadvantage lower-income families or those in rural areas where such services are limited. Additionally, discussions could reflect on the potential impact of this tax credit on state revenues and the need for sustainable funding mechanisms to support its ongoing viability.
Establishing an empowerment scholarship tax credit to expand educational opportunities and fair access to quality education for low-and-moderate-income students