§ 26-51-507 - Employer-provided child care -- As qualified under 26-52-401.
26-51-507. Employer-provided child care -- As qualified under 26-52-401.
(a) A business which qualifies for the exemption from the gross receipts tax under 26-52-401(29) shall be allowed an income tax credit of three and nine-tenths percent (3.9%) of the annual salary of employees employed exclusively in providing child care services.
(b) If two (2) or more businesses participate in a child care program for their employees as provided by 26-52-401(29), then each business will be allowed an income tax credit of three and nine-tenths percent (3.9%) of the annual salary of only those employees who are on the respective business' payroll and are employed exclusively for providing child care services.
(c) (1) To qualify for the income tax credit, the revenue to the business or businesses from the child care facility cannot exceed the direct operating costs of the facility. If, on an annual basis, the child care facility receives revenue which exceeds the direct operating costs of the facility, the business or businesses will not be entitled to the income tax credit.
(2) For the purposes of this subsection, direct operating costs means:
(A) The cost of food and beverages provided to the children;
(B) The cost of labor for personnel whose services are performed exclusively on the premises of the child care facility for the care of the children and all related employment taxes paid by the employer; and
(C) All materials and supplies necessary to operate the child care facility.
(d) The income tax credit created by subsection (a) of this section shall first be available in the taxable year following the year the business makes payment of wages to child care workers. To the extent that the credit is not fully utilized in this first year, it may be carried forward for an additional two (2) years. Any credit remaining thereafter shall expire.
(e) The income tax provisions of this section shall be in full force and effect for all income tax years beginning on and after January 1, 1993.
(f) [Repealed.]