Other Legislative Item

Senate Bill 375

Tax Liability Deferral for Child Care Costs

Summary

SB 375 would allow for taxable years beginning on or after January 1, 2022 but before January 1, 2026 any resident subject to taxation under KRS 141.020 that incurs child care costs for employment related expenses for dependents under age five, to elect to defer up to $2,000 of tax liability for each taxable year not exceeding total child care costs for the taxable year. It would also prevent interest and penalty from accruing on child care advance deferrals and repayments.

Status

SB 375 is sponsored by Senator David Yates. It awaits a hearing in the Senate Appropriations & Revenue Committee.

Awaiting Committee Hearing