BILL TO EXPAND CHILD CARE TAX CREDIT RECEIVES PUBLIC HEARING

Sen. Alfond introduces measure to help working families with children

AUGUSTA–A measure to make child care more affordable to more families by increasing the child care tax credit received broad support at a public hearing in the state’s Education & Cultural Affairs Committee today.

“Maine has a growing and urgent problem — we don’t have the workforce we need and it’s hurting our state economically,” said State Senate Democratic Leader Justin Alfond, the sponsor of the measure. “This increase in this tax credit will mean more money in the pockets of working families, and would create a competitive advantage for versus most other states.

Currently, Maine families can claim up to 25% of the federal child care tax credit against their state income taxes. The bill, LD 930, would allow Maine families to claim 100% of the federal credit. The bill would also make the credit completely refundable.

As the state with nation’s oldest population, Sen. Alfond emphasized the need to make Maine more attractive for young families during the public hearing. “Maine has always been a family-focused place. We all know many people who moved to Maine later in life because they wanted to raise their family here. And we already have  a high quality child care system. We could, however, become a national leader in affordable childcare with some policy changes and investment.”

The state’s Education committee is expected to schedule a work session for LD 930, “An Act To Attract Young Families to Maine and Keep Young Families in Maine by Expanding the Child Care Tax Credit,” in the coming weeks.