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House approves employer childcare tax credit, fiscal impact uncertain
Summary
Senate Bill 22‑82, creating an income tax credit for employers who contribute toward employee child care, passed the House 72‑12; the credit covers 50% of employer contributions up to $500 per employee but the fiscal effect is indeterminate, the clerk said.
The North Dakota House on March 19 approved Senate Bill 22‑82, which creates an employer income tax credit for contributions toward employees' child care. The final roll‑call vote in the chamber was 72 yeas and 12 nays.
The bill, as presented by committee and read on the floor, would allow a credit equal to 50% of the total employer contribution toward child care costs in a taxable year, capped at $500 per employee. The credit cannot exceed the employer’s taxable liability and excess credit cannot be carried forward or back. Employees must live in North Dakota to qualify and the child care provider must be licensed; the measure allows use of licensed providers within 10 miles of the state border to accommodate border communities.
Representative Doctor, delivering the Finance and Taxation Committee report, said the committee recommended amendments and, when so amended, recommended a "do pass" on a 9‑4 vote with one member excused. The chief clerk noted a fiscal note from the tax commissioner saying the fiscal impact could not be determined because taxpayer behavior is an unknown variable.
Supporters framed the bill as a workforce measure. "Without affordable child care, many parents have trouble staying in or joining the workforce," Representative Doctor said, adding that surveys distributed to lawmakers by business groups showed employers struggling to hire and citing child care as a factor. He described the change as a tool for employers to add flexibility to benefit packages.
Floor debate was brief. After the clerk opened the voting key and recorded members’ votes, the clerk announced Senate Bill 22‑82 was declared passed by the House.
The bill as presented includes a fiscal‑note caveat; the effective date and administrative implementation details were not included in the floor summary. The House record shows the committee vote, floor passage tally and the statutory chapters the bill would amend.
