BillTracker

Establishing the working families' child care access and affordability through regional employers act (Reeves, Robinson, Kagi)

Creates the child care workforce conditional scholarship and loan repayment program for: (1) Awarding conditional scholarships to eligible students attending an institution of higher education who meet certain requirements; and (2) Loan repayments for participants providing early learning services who meet certain requirements. Requires the department of children, youth, and families to: (1) Consult with the department of commerce to develop a web site containing current resources for businesses regarding employer-supported child care; and (2) Consult with the office of financial management to modify the bring your infant to work policy for use in state agencies. Provides a business and occupation tax credit and a public utility tax credit for: (1) Qualifying contributions made to dependent care flexible spending accounts for employees; (2) Amounts paid to a third-party administrator for the purpose of administering employee dependent care flexible spending accounts; and (3) Contributions made to the child care workforce conditional scholarship and loan repayment account. Provides a sales and use tax exemption to a child care provider, in the form of a remittance, for qualified expenditures. Creates the child care workforce conditional scholarship and loan repayment account.

SUMMARY OF 1ST SUBSTITUTE COMPARED TO ORIGINAL BILL
(1) Requires the Department of Children, Youth, and Families to provide guidance for the provision of employer-supported child care. (2) Establishes a Child Care Workforce Conditional Scholarship and Loan Repayment program. (3) Provides a business and occupation or public utility tax credit for businesses contributing to employee dependent care flexible spending accounts or the Child Care Workforce Conditional Scholarship and Loan Repayment program.

EFFECT OF CHANGES MADE BY 2ND SUBSTITUTE
Makes the following changes to the business and occupation and public utility tax credits: (1) Limits the credit for employer contributions to dependent care flexible spending accounts to: employers with fewer than 100 employees; $50,000 per year for an individual employer; and $500,000 per year for all employers per year. (2) Eliminates the credit for employer costs for administration of dependent care flexible spending accounts. (3) Eliminates the credit for contributions to the Child Care Workforce Conditional Scholarship Program.

Requires the Department of Commerce to conduct outreach about the tax credits to businesses located in rural and underserved areas.

Delays implementation of the Child Care Workforce Conditional Scholarship and Loan Repayment Program until private contributions exceed $100,000.

Requires the Joint Legislative Audit and Review Committee to conduct a published evaluation of the tax incentives by July 31, 2022.

EFFECT OF HOUSE STRIKER AMENDMENT
(1) Clarifies that the annual dollar limits apply to the combined total of business and occupation and public utility tax credits. Limits the credit to employers with at least five but no more than 100 employees. (2) Limits the tax credits to qualifying contributions for employees with annual wages of less than $125,000. (3) Requires the Joint Legislative Audit and Review Committee to include employee wage data in the tax preference performance review. (4) Requires employers claiming a credit to identify the number of employees receiving wages in specified wage bands for whom the employer makes a qualifying contribution. (5) Requires the Department of Children, Youth, and Families to provide the required written notice when contributions to the Child Care Workforce Conditional Scholarship and Loan Repayment Account exceed $100,000. (6) Makes technical corrections. (7) Limits eligibility for business and occupation and public utility tax credits to contributions made to dependent care flexible spending accounts for employees with annual gross wages of $98,880 or less.

Hearing Date: Saturday, February 24, 2018 -- 9:00 am

WA State Legislature Link:
http://app.leg.wa.gov/billsummary?BillNumber=2396&Year=2017    (opens a new browser tab)