School readiness; tax credits established for five categories of expenditures. (HB700)

Introduced By

Del. Karrie Delaney (D-Centreville) with support from co-patron Del. Joe Lindsey (D-Norfolk)


Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law


School readiness tax credits. Establishes tax credits for five categories of expenditures related to school readiness: (i) parents' child care expenses, (ii) child care providers' expenses, (iii) educational development expenses of child care facility directors and staff, (iv) expenses paid by a business to improve child care for its employees' children, and (v) businesses' donations to child care resource and referral agencies. The bill defines "child" to mean a child under the age of six and "child care facility" to mean a facility that primarily serves children under the age of six. The credits related to child care facilities are only available if the facility has attained at least level two in the Virginia Quality Rating and Improvement System administered by the Department of Social Services. If the facility has attained a higher level, the credits are increased by a multiplier. The bill directs the Department of Social Services to develop professional development criteria for child care facility directors and staff. The criteria shall consist of four levels representing cumulative advancement in child care skill and shall be designed to ensure high-quality child care in Virginia. The credit for educational development expenses is increased by a multiplier depending on the level that the director or staff has achieved. The credit for child care expenses is based on a percentage of the federal income tax credit for child care and other dependent care expenses; however, it is reduced based on the parent's income level. The credits for child care expenses, child care providers, and educational development expenses are refundable if the taxpayer's adjusted gross income is less than or equal to $25,000. Taxpayers that have an adjusted gross income over $25,000 may carry forward any unused credit for up to five years. The bill provides that the Department may recapture any credit issued, with interest, from any taxpayer that obtained the credit but failed to meet the applicable criteria. Read the Bill »


Bill Has Failed


01/09/2018Prefiled and ordered printed; offered 01/10/18 18103618D
01/09/2018Referred to Committee on Finance
01/23/2018Impact statement from TAX (HB700)
01/23/2018Assigned Finance sub: Subcommittee #2
01/24/2018Impact statement from TAX (HB700)
01/31/2018Subcommittee recommends continuing to 2019
02/13/2018Left in Finance