WeVote
Log In

Bill

Bill

LD 203

An Act To Provide An Income Tax Credit For Employer-Supported Child Care

132nd Legislature (2025-2026) Introduced by Rick Bennett and 4 co-sponsors

LD 203 would create a Maine state income tax credit for employers who fund or provide employer-supported child care, incentivizing more workplace child-care support.

Pursuant to Joint Rule 310.3 Placed in Legislative Files (DEAD)
#credits #employerchildcarecosts #incometax
0
WeVote Research Nonpartisan
Bill Summary · LD 203

Summary of LD 203: An Act To Provide An Income Tax Credit For Employer-Supported Child Care

Status: DEAD (Pursuant to Joint Rule 310.3 Placed in Legislative Files)
Introduced: January 14, 2025
Subject: tax credits, employer-supported child care, income tax
Legislative body: Maine Legislature (132nd Legislature)

Quick overview

LD 203 would have created a state income tax credit for employers that provide child care support to their employees. The intent appears to be to incentivize employers to assist with child care costs or services as a means to support workers and potentially improve recruitment and retention.

What the bill would do

  • Establish a state income tax credit for employers that fund or otherwise provide employer-supported child care to their employees.
  • The mechanism, including who qualifies (types of expenditures or programs), the credit amount or rate, any caps, carry-forward rules, and reporting requirements, would be specified in the bill text. Those details are not provided in the summary available here.
  • Likely considerations would include eligibility criteria, documentation requirements for claiming the credit, and interaction with other tax credits or deductions.

Key provisions (as far as the provided information indicates)

  • Creation of a tax credit against Maine state income tax for qualifying employer-provided child care costs or services.
  • Details on eligibility, credit calculation, caps, and administration would be defined in the legislative text.
  • The bill would define how eligible expenditures are treated for purposes of the credit and any required proof of compliance or impact.

Note: Specifics such as credit rate, maximum credit per employer, per-employee limits, eligible expenditures (e.g., on-site care, subsidies, vouchers), and duration are not included in the information provided.

Who would be affected

  • Primary: Employers that provide employer-supported child care or related services/subsidies to their employees.
  • Secondary: Employees of those employers who could benefit indirectly through improved access to child care.
  • State tax administration and enforcement agencies, which would administer the credit and ensure compliance.

Fiscal and policy considerations

  • The bill would reduce general revenue in the form of tax credit redemptions, depending on uptake and the credit’s design.
  • It could influence employer-based child care arrangements and decision-making about benefits offerings.
  • Administrative requirements would govern how employers claim the credit, what records must be kept, and how the credit interacts with the state’s income tax system.

Legislative history and status

  • Jan 14, 2025: Referred to the Committee on Taxation.
  • Jan 14, 2025: In concurrence; ordered sent forthwith.
  • Mar 21, 2025: Carried over to the next special or regular session (Joint Order SP 519).
  • Apr 29, 2025: Work session held; Voted ONTP (Ought Not To Pass).
  • May 1, 2025: Reported Out – ONTP.
  • May 6, 2025: Placed in Legislative Files (DEAD) under Joint Rule 310.3.

Potential impacts if revived

  • Could create a financial incentive for employers to expand or initiate employer-supported child care programs.
  • May require administrative changes for employers to claim and substantiate the credit.
  • State revenue implications would depend on the credit’s size and uptake, balanced against broader goals of improving child care access and workforce stability.

Next steps

If interested in this policy area, monitor any reintroduction or amendments in future sessions, and review the full bill text for precise credit details, eligibility, and reporting requirements.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.