WeVote
Log In

Bill

Bill

S 5959

Creates deductions for creation or improvements of child care facilities

2025 Regular Session Introduced by Kevin Parker

Creates tax deductions for building or upgrading child care facilities, lowering after-tax costs for developers and operators and boosting supply and access.

REFERRED TO BUDGET AND REVENUE
0
WeVote Research Nonpartisan
Bill Summary · S 5959

Legislative Bill Summary: S 5959

Overview

  • Bill Number: S 5959
  • Title: Creates deductions for creation or improvements of child care facilities
  • Status: Referred to Budget and Revenue
  • Introduced: March 4, 2025
  • Sponsor: Kevin S. Parker (primary)

S 5959 is a Senate bill proposing tax deductions intended to support the development and improvement of child care facilities. The referral to the Budget and Revenue Committee indicates an initial fiscal review as part of the legislative process.

Purpose and Intent

  • The core aim, as reflected in the title, is to encourage private sector investment in child care by authorizing tax deductions for costs associated with creating new child care facilities or making improvements to existing ones.
  • By reducing after-tax costs for developers and operators, the bill seeks to expand access to child care services and potentially improve quality through upgraded facilities.

Key Provisions (Based on Title; text not provided)

  • The bill is described as creating a tax deduction for two broad activities:
    1. Creation of new child care facilities. This would cover expenditures tied to establishing new centers or spaces designated for child care.
    2. Improvements to existing facilities. This would cover renovation, modernization, expansion, or other qualifying improvements.
  • Details not provided in the summary (and would appear in the full text):
    • Eligibility criteria (e.g., licensed facilities, geographic or workforce considerations).
    • The amount or structure of the deduction (e.g., deduction amount as a percentage of costs, fixed dollar caps, or phase-in).
    • Eligible costs (construction, leasehold improvements, equipment, installations, professional services).
    • Sunset or expiration provisions, carryover rules, and interaction with other tax incentives or credits.
    • Administrative rules, documentation requirements, and compliance measures.

Affected Parties

  • Potentially affected: developers, property owners, and operators of child care facilities; construction and real estate developers; investors considering child care projects.
  • Local governments and school districts could be indirectly affected through changes in the availability and location of child care services.

Procedural and Timeline Considerations

  • Current stage: Referred to Budget and Revenue. This suggests an early-stage fiscal assessment before any floor consideration or amendments.
  • Next steps typically expected: Committee hearings, potential amendments, a fiscal note analysis, and subsequent votes in the Senate and Assembly. If passed, the bill would proceed to broader consideration and potentially become law with or without amendments.

Related Legislation

  • The bill lists multiple related and companion bills from prior sessions, including:
    • A 833 (companion)
    • A 4682, A 4194, A 4253, A 4764, S 8202, S 5897 (prior-session)
    • S 7346, A 4429, A 6142 (prior-session)
  • This pattern indicates ongoing legislative interest in tax incentives to support child care facilities, with multiple versions and counterparts across sessions.

Impact and Considerations

  • If enacted, the deduction could lower the after-tax cost of developing or upgrading child care facilities, potentially increasing supply and improving quality and access.
  • The fiscal impact would depend on the deduction amount, eligibility, and caps, and would be assessed by the Budget and Revenue Committee and the fiscal notes attached to the bill.

For readers seeking the exact mechanics (deduction amount, eligibility criteria, caps, sunset, and reporting requirements), the full text of S 5959 will be essential.

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

Sign in to ask a question.