HF633

This bill, sponsored by Nadeau and Myers, aims to support licensed in-home child care providers by establishing a tax credit for properties used to operate family day care or group family day care programs.

Here’s a breakdown of the key points:

1. Eligibility: Properties classified as class 1a, which includes houses with garages and surrounding land up to one acre, if used for licensed family or group child care, qualify for this credit.

2. Notification: By July 1, 2025, and every June 1 thereafter, the commissioner of human services must provide counties with a list of all licensed family and group day care providers.

3. Credit Amount: Eligible child care providers can receive a tax credit equal to 50% of the net tax owed on their property for that year, after subtracting other applicable credits.

4. Reimbursement Process: The county auditor will determine the tax reduction for each property under this credit and report to the commissioner of revenue. The commissioner of revenue will then reimburse local taxing areas, except school districts, in two equal payments each year.

5. Funding: Funds for these reimbursements will come from the general fund, and specific amounts are allocated annually to ensure these tax reductions are covered.

In essence, this bill seeks to ease the financial burden on child care providers by reducing the property taxes they owe, facilitating a more supportive environment for the provision of essential child care services.