00                             SENATE BILL NO. 199                                                                         
01 "An Act providing a tax credit to an employer for expenses related to child care for an                                 
02 employee; and relating to the child care facility revolving loan fund."                                                 
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1. AS 43.98 is amended by adding a new section to article 3 to read:                                     
05            Sec. 43.98.035. Employer's child care expenditure tax credit. (a) An                                       
06       employer may apply a tax credit against a tax due under this title for expenditures                               
07       related to child care for an employee as provided in this section. For each calendar                              
08       year, the credit under this section may not exceed the lesser of $2,500 for each                                  
09       employee for whom the employer makes an eligible child care expenditure or 50                                     
10       percent of the eligible child care expenditure made by the employer for each employee                             
11       for whom the expenditure is made.                                                                                 
12            (b)  The credit under this section may not reduce an employer's tax liability for                            
13       a tax imposed under this title to below zero for any tax year. An unused credit or                                
14       portion of a credit not used under this section for a calendar year may be carried                                
01       forward and applied in a subsequent calendar year.                                                                
02            (c)  An eligible child care expenditure is an expenditure by the employer that is                            
03       related to                                                                                                        
04                 (1)  child care for the child of an employee for the cost of                                            
05                      (A)  child care that is provided by a person other than the                                        
06            employer or employee;                                                                                        
07                      (B)  child care that is provided by a person designated by an                                      
08            employee who is not the employer or an employee of the employer;                                             
09                      (C)  a voucher for child care provided to an employee for the                                      
10            child of the employee;                                                                                       
11                 (2)  a contract for providing child care resources and referral services                                
12       for an employee with a child.                                                                                     
13            (d)  At the time an employer claims a credit under this section, the employer                                
14       shall provide a written statement                                                                                 
15                 (1)  identifying each employee for whom an eligible child care                                          
16       expenditure is made;                                                                                              
17                 (2)  identifying each person receiving from the employer a payment                                      
18       that the employer claims as an eligible child care expenditure;                                                   
19                 (3)  stating the amount of eligible child care expenditures the employer                                
20       paid for each employee for whom an eligible child care expenditure is made;                                       
21                 (4)  containing other information required by the department.                                           
22            (e)  The department may adopt regulations necessary to administer the credit                                 
23       provided by this section.                                                                                         
24    * Sec. 2. AS 44.33.255(a) is amended to read:                                                                      
25            (a)  A loan to a child care facility under AS 44.33.240 - 44.33.275 may not                                  
26       exceed $100,000 [$50,000].                                                                                    
27    * Sec. 3. AS 44.33.260 is amended by adding a new subsection to read:                                              
28            (b)  a child care facility may use the proceeds of a loan received under                                     
29       AS 44.33.240 - 44.33.275                                                                                          
30                 (1)  to modify a publicly or privately owned building for the purpose of                                
31       providing child care;                                                                                             
01                 (2)  to modify an existing child care facility;                                                         
02                 (3)  to construct a new child care facility;                                                            
03                 (4)  for other purposes related to a child care facility identified in a                                
04       regulation adopted by the department.