(a) A credit shall be allowed to individuals against the income tax imposed by the Income Tax Act of 1929, § 26-51-101 et seq., for expenses for household and dependent care services necessary for gainful employment in the manner prescribed by subsection (b) of this section.
(b) (1) Title 26 U.S.C. § 21, as in effect on January 2, 2013, is adopted for purposes of determining the allowable credit under the Income Tax Act of 1929, § 26-51-101 et seq., for household and dependent care services necessary for gainful employment.
(2) The amount of credit shall be twenty percent (20%) of the federal credit allowable.
(c) (1) (A) (i) A credit, which is equal to twenty percent (20%) of the federal child care credit as allowed under 26 U.S.C. § 21, as in effect on January 2, 2013, shall be allowed to qualified individuals against the income tax imposed by the Income Tax Act of 1929, § 26-51-101 et seq.
(ii) The twenty percent (20%) child care credit is refundable.
(iii) The excess of the credit over tax liability will be returned to the taxpayer as an overpayment of tax.
(B) "Qualified individual" means a taxpayer who has a dependent child with respect to whom the taxpayer is entitled to a credit under § 26-51-501(a)(3), and who incurs child care expenses necessary for gainful employment at an approved child care facility, as defined in subdivision (c)(1)(C) of this section.
(C) "Approved child care facility" means a child care facility which provided an appropriate early childhood program, as defined in § 6-45-103, and which is approved in accordance with § 6-45-109.
(2) A taxpayer cannot claim both the credit allowed in subsections (a) and (b) of this section and the credit allowed in subsection (c) of this section.
(3) The credit allowed in this subsection shall be effective for taxable years beginning January 1, 2013.
Section: 26-51-502 26-51-503 26-51-504 26-51-505 26-51-506 26-51-507 26-51-508 26-51-509 26-51-511 26-51-512 26-51-513 26-51-514 NextLast modified: November 15, 2016