HOUSE DOCKET, NO. 3150        FILED ON: 1/18/2019

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 2620

The Commonwealth of Massachusetts

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PRESENTED BY:

Daniel J. Ryan

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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:

The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:

An Act establishing early educator income tax credit.

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PETITION OF:

HOUSE DOCKET, NO. 3150        FILED ON: 1/18/2019

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 2620

The Commonwealth of Massachusetts

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In the One Hundred and Ninety-First General Court
(2019-2020)

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An Act establishing early educator income tax credit.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
 

SECTION 1. Section 6 of Chapter 62 of the Massachusetts General Laws is hereby amended by inserting after subsection (v) thereof the following new subsection:

(w)(1) As used in this subsection, the following words shall have the following meanings:-

"Eligible child care center" shall mean either a facility that  “child care center” as defined by section 7.02 of title 606 code of Massachusetts regulations or a program that provides family child care as defined under said 7.02 of said chapter 606.

"Eligible early childhood educator" shall mean any person who (i) has been approved by the department of early education and care for the regular care and education of children unrelated to the educator in a location outside the children's own home for all or part of the day, regardless of his or her level of certification; (ii) has been employed continuously for six months of the tax year for an average of twenty hours or more per week in an eligible child care center; and (iii) qualifies for the earned income tax credit, so called, allowed under subsection (h) of this section;

“Inflation” shall mean the annual percentage change in the United States Department of Labor’s Bureau of Labor statistics consumer price index for all urban consumers for all items paid for the Boston-Cambridge-Newton area;

“Taxpayer” shall mean an individual taxable under this chapter;

(2) (i) A taxpayer who is an eligible early childhood educator at an eligible child care program shall be allowed a credit against the taxes imposed by this chapter in an amount of $2000.00. 

(ii) For income tax years commencing on or after January 1, 2021, the department shall adjust the credit amounts set forth in subsection (2)(A) of this section to reflect inflation for the applicable taxable year.

(3) (i) Any amount of the credit that exceeds the tax due for a taxable year shall be refundable to the taxpayer for the taxable year in which the credit is claimed.

(i) The credit allowed by this program shall be in addition to the credit allowed under subsection (h) of this section. If other credits under this section including the credit established pursuant to subsection (h) are utilized by the taxpayer for the taxable year, the credit allowed by this subsection shall be applied last.

(4) In order to receive the credit described under this subsection, the eligible child care worker shall file with his or her income tax return an attestation form, developed and made available by the department of revenue, verifying that the taxpayer is an eligible child care worker.