An Act relative to a child and dependent care tax credit

This bill amends Massachusetts tax law to create a state-level child and dependent care tax credit. It provides a credit equal to 25% of the federal credit amount, capped at $500 per dependent, for Massachusetts residents who paid for child or dependent care. To qualify, taxpayers must be Massachusetts residents for part of the year (with credit prorated by days lived in state), and married couples must file jointly or qualify as head of household. The credit directly affects Massachusetts taxpayers with eligible care expenses who meet the residency and filing requirements.