Child care program; tax credit to employers for operating costs. (HB502)

Introduced By

Del. Rob Krupicka (D-Alexandria) with support from co-patron Sen. Phil Puckett (D-Tazewell)


Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law


Employer quality child care program tax credit. Establishes an individual and corporate income tax credit beginning in 2014 for amounts paid or incurred by employers for the operating costs of quality child care programs used by the children of their employees. The bill defines a quality child care program as a center-based or similar program that is participating in Virginia's Quality Rating and Improvement System. The credit would equal 35 percent of the (i) operating costs incurred by the employer to operate its own quality child care program for employees, (ii) payments made by the employer to an independent quality child care program on behalf of its employees, and (iii) payments made directly to employees as an employee benefit for the quality child care program expenses of their children. The Tax Commissioner would be limited to issuing $5 million in tax credits each fiscal year. The maximum tax credit allowed in any taxable year to any employer would be limited to $250,000. Credit would also be allowed to employers for expenditures prior to January 1, 2016, on child care programs not participating in Virginia's Quality Rating and Improvement System but that otherwise meet all other requirements under the bill in regard to child care programs. Unused credits would be allowed to be carried forward for three taxable years. Read the Bill »


Bill Has Failed


01/06/2014Prefiled and ordered printed; offered 01/08/14 14102989D
01/06/2014Referred to Committee on Finance
01/22/2014Assigned Finance sub: Subcommittee #3
01/23/2014Impact statement from TAX (HB502)
01/24/2014Subcommittee recommends laying on the table
02/12/2014Left in Finance