1.26 Ark. Code R. 51-502(c)(1)

Current through Register Vol. 49, No. 10, October, 2024

Rule 1.26-51-502(c)(1) - Twenty Percent (20%) Approved Child Care Facility Credit

A credit against individual income tax owed to the State of Arkansas is allowed for expenses incurred by a "qualified individual" for child care services provided by an "approved child care facility." The amount of this credit shall be twenty percent (20%) of the total federal household and dependent care credit allowed under Section 21 of the Internal Revenue Code as in effect on January 1, 1993. Three (3) general requirements must be satisfied before the credit can be taken:

1. A federal household and dependent care credit must be allowable under IRC Sec. 21 as in effect on January 1, 1993.

2. A "qualified individual" is a taxpayer who:

i. Has a dependent child with respect to whom the taxpayer is entitled to a credit under ACA 26-51-501(a)(3); and

ii. Incurs child care expenses necessary to obtain or hold gainful employment at an approved child care facility;

3. An approved child care facility is a child care facility which:

i. Provides an "appropriate early childhood program." Such programs are developmentally appropriate for young children, ages three through five (3-5), and are approved by the Arkansas Department of Education; and

ii. Has been certified by the Arkansas Department of Education. ACA 6-45-109.

1.26 Ark. Code R. 51-502(c)(1)