03/24/2025 01:30 PM Senate LABOR & COMMERCE

                 SB  96-CHILD CARE: TAX CREDITS                                                                             
                                                                                                                                
2:18:10 PM                                                                                                                    
CHAIR  BJORKMAN   reconvened  the   meeting  and   announced  the                                                               
consideration  of  SENATE  BILL  NO.   96  "An  Act  relating  to                                                               
education tax credits for certain  payments and contributions for                                                               
child care and  child care facilities; relating  to the insurance                                                               
tax education  credit, the income  tax education credit,  the oil                                                               
or  gas producer  education credit,  the  property tax  education                                                               
credit,  the  mining  business education  credit,  the  fisheries                                                               
business  education credit,  and the  fisheries resource  landing                                                               
tax  education  credit;  providing   for  an  effective  date  by                                                               
amending the  effective date of secs.  1, 2, and 21,  ch. 61, SLA                                                               
2014; and providing for an effective date."                                                                                     
                                                                                                                                
2:18:39 PM                                                                                                                    
REPRESENTATIVE   ZACK   FIELDS,   District   17,   Alaska   State                                                               
Legislature,  Juneau, Alaska,  presented  a recap  of  SB 96  and                                                               
stated  that this  bill reinstates  the childcare  tax credit  to                                                               
encourage  private sector  investment  in childcare.  He said  it                                                               
originated from  bipartisan House Bill  89, carried last  year by                                                               
Representative Coulombe, and passed  as part of an end-of-session                                                               
omnibus.                                                                                                                      
                                                                                                                                
2:19:24 PM                                                                                                                    
CHAIR BJORKMAN opened public testimony on SB 96.                                                                                
                                                                                                                                
2:20:04 PM                                                                                                                    
BLUE SHIBLER,  Executive Director, Association for  the Education                                                               
of Young Children, Juneau, Alaska,  testified in support of SB 96                                                               
and stated that  Alaska faces an urgent  childcare crisis, making                                                               
it hard  for working  parents to  find affordable,  reliable care                                                               
and for businesses  to retain employees. She said  the problem is                                                               
too  large   for  any  single   entity  to  solve   and  requires                                                               
collaboration   among  families,   providers,  governments,   and                                                               
businesses.  SB  96  offers  a  strategic  solution  by  allowing                                                               
corporate investment  in childcare, strengthening  the workforce,                                                               
supporting   families,   and   boosting  the   state's   economic                                                               
stability.                                                                                                                      
                                                                                                                                
2:21:47 PM                                                                                                                    
NICK MOE, representing self, The  Alaska Early Childhood Advocacy                                                               
Group,  Anchorage, Alaska,  testified  in support  of  SB 96  and                                                               
stated  that  the  Alaska  Early   Childhood  Advocacy  Group,  a                                                               
coalition of  nine nonprofits, highlighted the  state's childcare                                                               
challenges.   He  said   over  51   percent  of   families  can't                                                               
participate  fully in  the workforce  due to  lack of  childcare,                                                               
23,000 children lack access to  childcare, and Alaska loses about                                                               
$164  million annually  in economic  activity. Of  more than  400                                                               
licensed programs,  fewer than 10  are employer sponsored.  SB 96                                                               
encourages  private   sector  investment  through   tax  credits,                                                               
helping  stabilize  and  expand  childcare options.  He  gave  an                                                               
example of him using an  employee sponsored childcare program for                                                               
his children  which helped  him have the  flexibility to  stay at                                                               
his job.  He said SB  96 passed the  House last year  with strong                                                               
bipartisan support of (35-5), and  funding is already included in                                                               
the governor's budget, making timely passage feasible.                                                                          
                                                                                                                                
2:24:45 PM                                                                                                                    
CHAIR BJORKMAN closed public testimony on SB 96.                                                                                
                                                                                                                                
2:24:57 PM                                                                                                                    
CHAIR BJORKMAN solicited the will of the committee.                                                                             
                                                                                                                                
2:24:59 PM                                                                                                                    
SENATOR MERRICK  moved to report  SB 96, work  order 34-LS0447\A,                                                               
from  committee  with  individual  recommendations  and  attached                                                               
fiscal note(s).                                                                                                                 
                                                                                                                                
2:25:15 PM                                                                                                                    
CHAIR BJORKMAN  found no  objection and SB  96 was  reported from                                                               
the Senate Labor and Commerce Standing Committee.