TAX/TAXATION: Provides for changes to the School Readiness Tax Credit. (1/1/26) (EN DECREASE GF RV See Note)

Increased the maximum eligible expenses for facility construction, renovation, or repair from $50,000 to $100,000 per tax year.

Increased the maximum eligible expenses for child care services from $5,000 to $10,000 per child per tax year.

Increased the maximum eligible expenses for purchasing child care slots from $50,000 to $100,000 per tax year.

Updated the definition of 'Eligible business child care expenses' to reflect the new higher dollar limits.

Revised the credit cap adjustment mechanism to trigger an increase if at least 80% of the previous year's cap was utilized, replacing the previous 80% threshold for non-adjustment.

Clarified that the Act applies to taxable periods beginning on or after January 1, 2026, with an effective date of January 1, 2026.

Added Representatives Bacala, Berault, Carver, Chassion, Freeman, Freiberg, Knox, Mandie Landry, Moore, Spell, and Wyble as co-sponsors to the bill.

Added a requirement for the Department of Revenue to publish the annual credit cap amount on their website by July 1st, though this requirement is waived once the cap reaches the $5 million maximum.

Updated the document header and page count to reflect the final enrolled status, changing the session reference from 'Engrossed' to 'Enrolled' and adjusting page counts from 5 to 4.

Reorganized the definition of 'Eligible business child care expenses' to explicitly list three categories: facility construction/repair (up to $510,000), service payments (up to $5,000 per child), and slot purchases (up to $51,000).

Established a specific credit cap of $1 million for the 2026 tax year and introduced a dynamic mechanism where the cap increases by $1 million in subsequent years if less than 80% of the available cap was used in the prior year.

Defined the application process as first-come, first-served with a deadline of February 28th, and established a pro-rata approval method for applications that exceed the available credit limit.