AN ACT relating to the tax liability deferral related to child care costs.

Create new section of KRS Chapter 141 that allows for taxable years beginning on or after January 1, 2022 but before January 1, 2026 any resident subject to taxation under KRS 141.020 that incurs child care costs for employment related expenses for dependents under age five, to elect to defer up to $2,000 of tax liability for each taxable year not exceeding total child care costs for the taxable year; amend KRS 131.175 to prevent interest and penalty from accruing on child care advance deferrals and repayments; amend KRS 131.190 to allow reporting to the Legislative Research Commission.