Tax credits proposed for child care in Florida

©2024 The News Service of Florida

A proposal that would provide tax breaks to businesses that operate child-care facilities for employees got support Monday in the House.

The bill (HB 635) also would give tax credits to businesses that make payments to child-care facilities on behalf of their employees.

Members of the House Ways & Means Committee voted unanimously to back the measure.

The maximum credits that businesses could receive would be determined by the number of employees they have.

Under the bill, businesses with one to 19 employees could get a maximum of $50,000 in credits; businesses with 20 to 250 employees could get a maximum of $500,000, and businesses with more than 250 employees could get a maximum of $1 million in credits.

“The credit can be taken against corporate income tax, insurance premium tax, severance taxes on oil and gas production, alcoholic beverages tax, and sales tax paid by direct pay permit holders,” a House analysis of the measure said.

All credits given out under the proposal could not exceed $5 million a fiscal year.

Bill sponsor Fiona McFarland, R-Sarasota, pointed to her own experience trying to get care for her children.

“Child care is hard to find. It’s super-expensive. It’s the number two cost for (households) beyond the cost of housing,” McFarland said.

A similar Senate bill (SB 820) got initial approval from the Education PreK-12 committee last week.