SECTION 1. Chapter 62 of the General Laws is hereby amended by inserting after section 6N the following section:-
Section 6O. (a) For the purposes of this section, the following terms shall, unless the context clearly requires otherwise, have the following meanings:
“Child care service”, a child care center, family child care home, group care facility or school-aged child care program, as defined in section 1A of chapter 15D, that is licensed by the department of early education and care pursuant to said chapter 15D.
“Qualifying employer”, a small or medium-sized business entity that has: (i) its principal place of business in the commonwealth; and (ii) fewer than 1,000 employees.
(b) A qualifying employer that is not a business corporation subject to the excise under chapter 63 shall be allowed a credit against the tax liability imposed by this chapter equal to 25 per cent of the money it expended for child care services for its employees in a taxable year, with a maximum credit of $750,000 per qualifying employer in any 1 taxable year.
SECTION 2. Section 6O of said chapter 62 is hereby repealed.
SECTION 3. Chapter 63 of the General Laws is hereby amended by inserting after section 31N the following section:-
Section 31O. (a) For the purposes of this section, the following terms shall, unless the context clearly requires otherwise, have the following meanings:
“Child care service”, a child care center, family child care home, group care facility or school-aged child care program, as defined in section 1A of chapter 15D, that is licensed by the department of early education and care pursuant to said chapter 15D.
“Qualifying business corporation”, a small or medium-sized business corporation that has: (i) its principal place of business in the commonwealth; and (ii) fewer than 1,000 employees.
(b) A qualifying business corporation engaged in business in the commonwealth shall be allowed a credit against its excise due under this chapter in an amount equal to 25 per cent of the money it expended for child care services for its employees in a taxable year, with a maximum credit of $750,000 per business corporation in any 1 taxable year.
SECTION 4. Section 31O of said chapter 63 of the General Laws is hereby repealed.
SECTION 5. Sections 2 and 4 shall take effect on June 30, 2028.
The information contained in this website is for general information purposes only. The General Court provides this information as a public service and while we endeavor to keep the data accurate and current to the best of our ability, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.