SB 976

Under current law, an individual who is eligible to claim the federal child and

dependent care tax credit may claim a state income tax credit equal to 50 percent of

the amount the individual may claim as a federal income tax credit. However, the

amount of employment-related expenses that an individual may claim to determine

the amount of the federal credit is limited to $3,000 if the individual has only one

qualifying dependent, and $6,000 if the individual has two or more qualifying

dependents.

This bill increases the amount of the state credit that an individual may claim

by increasing the employment-related expense limitation to $10,000 for one

qualifying dependent and $20,000 for two or more qualifying dependents.