Personal income taxes: household and dependent care services.

The Personal Income Tax Law, in modified conformity to federal income tax law, authorizes a credit for household and dependent care services necessary for gainful employment, as provided. That law provides that the amount of the state credit is a percentage, either 50%, 43%, or 34%, as applicable, of the allowable federal credit determined on the basis of the amount of federal adjusted gross income earned that is not over $100,000, as specified by separate income brackets. This bill, for taxable years beginning on or after January 1, 2019, would revise the above calculation to provide that the applicable state credit percentage is 50% if the federal adjusted gross income earned is not over $100,000, as provided. The bill would additionally require, for taxable years beginning on or after January 1, 2019, for a taxpayer with an allowable credit in excess of tax liability, a payment from the Tax Relief and Refund Account, a continuously appropriated account, to the taxpayer equal to the amount of the allowable credit that is in excess of tax liability, as provided. By authorizing additional payments from this account, this bill would make an appropriation.