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Committee advances childcare tax-credit bill, raises employer credit to 50% (Senate Bill 2282)
Summary
The committee approved multiple amendments to Senate Bill 2282, including increasing the employer credit from 30% to 50% and clarifying eligible payments; the amended measure was recommended for a due pass 9-4-1.
The Finance and Taxation Committee advanced Senate Bill 2282 with multiple amendments that change how an employer childcare tax credit is calculated and who qualifies to use it; the committee recommended a due pass as amended by a recorded vote of 9-4-1.
Representative Doctor moved to amend the bill to raise the credit calculation on line 11 from 30% to 50%; that amendment carried on a roll call (10-4). Committee members then worked through clarifying language with tax department legal counsel Matt Pearl, who explained the primary revision: the credit should be based on the aggregate of two types of payments an employer may make (reimbursements to employees and payments directly to childcare facilities) while maintaining the proposed per-employee cap. Pearl also confirmed later committee language that the credit would be limited by the employer’s North Dakota tax liability and that the credit could not be carried forward.
The committee added a requirement that the employee be a North Dakota resident and discussed whether to allow facilities located just across a border (within 10 miles) to count for the credit; the transcript shows members debated the border-city provision at length and that an amendment to remove the 10-mile language failed on a 4-10 vote, leaving the border provision in place. Committee members repeatedly emphasized the guardrails that limit the credit to employers with North Dakota tax liability and to North Dakota resident employees.
On final action recorded in the transcript, the committee recommended a due pass as amended with a tally reported as 9 in favor, 4 opposed and 1 absent/not voting. Representative Doctor agreed to carry the bill from the committee.
Key provisions clarified in committee discussion and amendments (as recorded): the credit will be earned based on the aggregate of employer payments to employees and payments to childcare facilities (subject to the per-employee cap), the cap applies to the first $500 of contributions per employee, the credit may not exceed the employer’s North Dakota tax liability, and the credit cannot be carried forward. The transcript did not include a fiscal note or a dollar estimate of the program’s statewide cost.
