An Act to renumber 71.07 (9g) (d); to amend 71.07 (9g) (b) 2., 71.10 (4) (cs) and 71.10 (4) (i); to create 20.835 (2) (cd), 71.07 (9g) (b) 3. and 71.07 (9g) (d) 2. of the statutes; Relating to: refundability of the additional child and dependent care tax credit and making an appropriation. (FE)
Impact
The passage of AB1118 is expected to have a profound impact on state laws regarding familial financial assistance and tax policy. With the refundable nature of the credit, more low-income families would have access to financial resources that can make a meaningful difference in their ability to afford quality child care. This bill aligns with broader efforts to address economic disparities and support working families, particularly those facing challenges in securing affordable child and dependent care solutions.
Summary
AB1118, known as the bill concerning the refundability of the additional child and dependent care tax credit, aims to enhance financial relief for families with children who require care. The bill proposes to convert certain elements of the existing child care financial support structure to refundable credits, thereby allowing families to receive direct financial assistance through tax refunds if their credit exceeds their tax liability. This change represents a significant shift in how the government supports families with child care expenses, especially benefiting those who may fall below the minimum tax threshold.
Contention
Despite the favorable aspects of AB1118, there are points of contention among lawmakers regarding its long-term fiscal implications and the potential increase in state budget expenditures. Critics argue that expanding the scope of refundable tax credits could strain the state's budget, raising concerns about sustainability and potential cuts to other essential programs. Proponents counter that the societal benefits of supporting child care outweigh the financial risks, emphasizing that investing in families leads to better outcomes in education and employment in the long run.
Crossfiled
An Act to renumber 71.07 (9g) (d); to amend 71.07 (9g) (b) 2., 71.10 (4) (cs) and 71.10 (4) (i); to create 20.835 (2) (cd), 71.07 (9g) (b) 3. and 71.07 (9g) (d) 2. of the statutes; Relating to: refundability of the additional child and dependent care tax credit and making an appropriation. (FE)