An Act to enhance child care relief

This bill modifies Massachusetts tax law to allow child care providers to exclude certain federal and state pandemic relief funds from their taxable income. It specifically targets grants and payments received under the CARES Act, the Consolidated Appropriations Act of 2021, the American Rescue Plan Act, and specific 2021 state distributions intended to support the child care sector during the COVID-19 crisis. The legislation clarifies that this tax exemption applies only to the relief funds themselves and does not extend to parent fees already covered by the Commonwealth. By removing these specific payments from gross income calculations, the act aims to reduce the tax burden on providers who received financial assistance during the pandemic.