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HB 7240 Connecticut House · 2025 Regular Session

AN ACT ESTABLISHING A CREDIT AGAINST THE PERSONAL INCOME TAX FOR OWNERS OF FAMILY CHILD CARE HOMES.

HB 7240 establishes a $500 refundable personal income tax credit for owners of state-licensed family child care homes. The credit applies to taxpayers who operate homes caring for up to six children (or nine with staff), as defined by state law, and must be licensed under specific regulations. Owners, shareholders of S corporations, partners in partnerships, or single-member LLC owners (if subject to personal income tax) can claim the credit against their tax bill. If the credit exceeds tax liability, the state must refund the excess without interest, effective January 1, 2026.
Issues: ✓ Budget & TaxesSupports Budget & TaxesProvides $500 refundable tax credit for child care providers, reducing their tax burden - direct tax relief for small operators under state licensing.92% confidence ✓ EducationSupports EducationProvides $500 tax credit for licensed family child care homes, supporting early education access and provider sustainability within educational access framework.85% confidence
Bill status in committee 1 of 4 stages cleared
Introduction
Mar 2025
Committee Review
Floor Vote
Governor
Introduced Mar 19, 2025 Last action May 8, 2025
Maddy AI version diff · 1 comparison

What changed between versions

Raised Bill → FIN Joint Favorable Substitute · 2 edits
MINOR
The bill was amended from a 'Raised Bill' to a 'FIN Joint Favorable Substitute', indicating it has been approved by the Finance Committee. The primary substantive change is the addition of a new eligibility requirement for the tax credit, specifying that the taxpayer must be licensed under section 19a-87b of the general statutes in addition to owning a family child care home. The formatting of the bill header and footer was also updated to reflect its status as a substitute bill.
Scope change
The bill's scope remains focused on providing a tax credit to owners of family child care homes, but the eligibility criteria were slightly modified to include a specific licensing requirement.
ELIGIBILITY

Added a requirement that the taxpayer must be licensed under section 19a-87b of the general statutes to claim the tax credit, in addition to owning a family child care home.

TECHNICAL

Changed the bill designation from 'Raised Bill No. 7240' to 'Substitute Bill No. 7240' and updated the committee reference from 'FINANCE, REVENUE AND BONDING' to 'FIN'.

Floor votes

How they voted

No floor votes recorded yet.
Full legislative history

Actions timeline

Total actions
9
Key actions
1
Committee
2
Apr 24, 2025
Lower · Passed
Joint Favorable Substitute
lower
Mar 19, 2025
Committee
REF. TO JOINT COMM. ON Finance, Revenue and Bonding
lower
0 primary · 0 co-sponsors

Sponsors

No sponsor information available.