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Bill

Bill

S 3471

Establishes business franchise, personal income and insurance franchise tax credits for the expenses of employer provided or sponsored child care

2025 Regular Session Introduced by Jake Ashby and 7 co-sponsors

Establishes tax credits against business, personal income, and insurance franchise taxes to offset employer-provided child care costs, easing burdens for employers and workers.

REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
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WeVote Research Nonpartisan
Bill Summary · S 3471

Summary of S 3471: Child Care Tax Credits for Employer-Provided or Sponsored Care

Overview

S 3471 would establish tax credits aimed at offsetting the expenses of employer-provided or employer-sponsored child care. The credits would apply to three tax types: business franchise tax, personal income tax, and insurance franchise tax. The bill was introduced on January 27, 2025 and is currently referred to the Investigations and Government Operations committee.

Status

  • Introduced: January 27, 2025
  • Current status: Referred to Investigations and Government Operations
  • Legislative actions: Referred to the committee on January 27, 2025 (listed twice in the provided actions)

What the bill would do (Key Provisions)

  • Creates tax credits against three taxes to offset expenses related to employer-provided or sponsored child care:
    • Business franchise tax
    • Personal income tax
    • Insurance franchise tax
  • The credits are described as offsetting the expenses of employer-provided or sponsored child care. Specific design features (e.g., credit amount, eligibility criteria, caps, phaseouts, or sunset provisions) are not provided in the available summary.
  • Administrative and compliance details (e.g., who administers the credits, verification requirements, interaction with other credits) are not specified in the provided materials.

Who would be affected

  • Employers that provide or sponsor child care for their employees (to the extent the credits apply to the business and insurance franchise taxes).
  • Individuals who incur or benefit from employer-provided or sponsored child care (to the extent the personal income tax credit is available to them).
  • Insurance carriers subject to the insurance franchise tax may be indirectly affected to the extent the credit applies to their tax liability.

Procedural and timeline aspects

  • The bill has been introduced and assigned to a committee (Investigations and Government Operations).
  • No timeline for hearings, amendments, or floor action is provided in the summary.
  • No fiscal note or implementation timeline is included in the available information.

Related bills

  • S 4618 (prior-session)
  • S 8943 (prior-session)
  • S 2609 (prior-session)
  • S 3447 (prior-session)

Key considerations for readers

  • The core idea is to provide tax relief across three tax categories for expenses related to employer-provided or sponsored child care.
  • Important details—such as credit rates, eligibility, calculation, caps, deductions, carryovers, and sunset provisions—are not included in the provided summary.
  • The bill’s passage could influence employer policies on child care, workforce participation, and overall tax revenues, depending on how the credits are structured and capped.

If you’d like, I can add a section outlining potential policy design options (e.g., credit percentage, caps, active vs. refundable structure) based on common approaches to employer-supported child care credits.

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

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