House panel approves Blanco's child care tax breaks

Posted in: Louisiana
June 19, 2007

Part of Gov. Kathleen Blanco's package of tax breaks moved forward on Monday under a bill that would give tax relief to low-income parents, up to $1,500 per child, for the cost of day care.

The measure would also reward day care facilities for improving their programs, and give their employees a tax break.

Sen. Ann Duplessis, D-New Orleans, the sponsor, said the tax credits would ease the "daunting experience" of finding affordable day care while helping transform the state's day care facilities into "the centers for excellence we so desperately need."

The House's tax committee approved the Senate-backed measure without objection on Monday, sending it to the full House.

The plan would represent $26 million in lost tax revenue for the state, part of the $150 million in tax breaks that Blanco is backing in the legislative session that ends June 28.

The Duplessis bill would direct the state Department of Social Services to create a new rating system for day cares, with the top programs getting five stars and the worst getting a single star.

Qualified parents could get a refundable state income tax credit of $750 for enrolling a child in a day care program that received two stars. Parents could get a maximum of $1,500 per child, for enrolling a child in a program getting the highest score of five stars.

Day care facilities would also get a break depending on the rating they receive from DSS, with "two-star" programs getting $750 per child, and the top programs getting $1,500.

Directors and staff of day cares would also be eligible for income tax breaks ranging from $1,500 to $3,000.

Full text available at the Daily Comet