Introduced by Representatives Branagan of Georgia, Donahue of Northfield, Brooks of Montpelier, Clark of Vergennes, Kennedy of Chelsea, Kitzmiller of Montpelier, Komline of Dorset, McAllister of Highgate, Otterman of Topsham and Winters of Williamstown
Subject: Income tax credit; home child care
Statement of purpose: This bill would provide a home child care credit against income taxes paid by parents who choose to nurture a child under the age of six years at home.
AN ACT RELATING TO AN INCOME TAX CREDIT FOR HOME CHILD CARE
It is hereby enacted by the General Assembly of the State of Vermont:
Sec. 1. 32 V.S.A. § 5829 is added to read:
§ 5829. CREDIT FOR HOME CHILD CARE
A taxpayer of this state with federal adjusted gross income less than $40,000.00 (or $50,000.00 for married filing jointly) for the entire taxable year who cared for a young child at home on a daily basis and did not place the child in a day care program outside the home and who is a parent or legal guardian of the child shall be eligible for a $1,000.00 refundable credit against the tax imposed under section 5822 of this title. “Young child” in this section means a child who at any time during the taxable year was under the age of six. A credit under this section shall be in lieu of any other child or dependent care credit available under this chapter.
Sec. 2. EFFECTIVE DATE
This act shall apply to taxable years beginning on and after January 1, 2005.
The Vermont General Assembly
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