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SB96 • 2026

CHILD CARE: TAX CREDITS

An Act relating to education tax credits for certain payments and contributions for child care and child care facilities; relating to the insurance tax education credit, the income tax education credit, the oil or gas producer education credit, the property tax education credit, the mining business education credit, the fisheries business education credit, and the fisheries resource landing tax education credit; providing for an effective date by amending the effective date of secs. 1, 2, and 21, ch. 61, SLA 2014; and providing for an effective date.

Children Education Energy Labor Taxes
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
SENATE RULES
Last action
2025-07-30
Official status
CHAPTER 15 SLA 25
Effective date
Not listed

Plain English Breakdown

The bill does not specify an exact effective date.

Child Care Tax Credits Act

This act creates tax credits for businesses and individuals who pay for child care or contribute to child care facilities in Alaska.

What This Bill Does

  • Creates new education tax credits for payments made by employers to help their employees with child care costs.
  • Allows tax credits for contributions of cash or equipment to nonprofit-run child care facilities that serve the children of an employer's staff.
  • Permits tax credits for expenses related to operating a child care facility in Alaska.
  • Requires the Department of Labor and Workforce Development to adjust the dollar limits on these tax credits every five years starting from 2030, based on inflation rates.

Who It Names or Affects

  • Businesses that provide child care assistance to their employees.
  • Nonprofit organizations running child care facilities.
  • Employees who receive financial support from employers for child care expenses.
  • Taxpayers eligible for the new or expanded tax credits.

Terms To Know

Education Tax Credits
A reduction in taxes that businesses and individuals can claim when they pay for certain education-related costs, including child care.
Consumer Price Index (CPI)
A measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Limits and Unknowns

  • The bill does not specify an effective date, but it will likely take effect after further administrative action.
  • It is unclear how many businesses or individuals will qualify for these tax credits.
  • The full impact on state revenue and child care costs remains to be seen.

Bill History

  1. 2025-07-30 1401

    (S) EFFECTIVE DATE(S) OF LAW SEE CHAPTER

  2. 2025-07-30 1401

    (S) SIGNED INTO LAW 6/24 CHAPTER 15 SLA 25

  3. 2025-07-30 1388

    (S) 10:30 A.M. 6/20/25 TRANSMITTED TO GOVERNOR

  4. 2025-05-16 1244

    (H) VERSION: SB 96

  5. 2025-05-16 1244

    (H) RETURN TO (S), TRANSMIT TO GOV NEXT

  6. 2025-05-16 1244

    (H) EFFECTIVE DATE(S) SAME AS PASSAGE

  7. 2025-05-16 1244

    (H) PASSED ON RECONSIDERATION Y35 N4 E1

  8. 2025-05-16 1244

    (H) RECON SAME DAY UC - IN THIRD READING

  9. 2025-05-16 1239

    (H) RAUSCHER NOTICE OF RECONSIDERATION

  10. 2025-05-16 1239

    (H) EFFECTIVE DATE(S) SAME AS PASSAGE

  11. 2025-05-16 1238

    (H) PASSED Y33 N5 E1 A1

  12. 2025-05-16 1238

    (H) READ THE THIRD TIME SB 96

  13. 2025-05-16 1238

    (H) ADVANCED TO THIRD READING UC

  14. 2025-05-16 1238

    (H) READ THE SECOND TIME

  15. 2025-05-16 1238

    (H) RULES TO CALENDAR 5/16/2025

  16. 2025-05-16 1221

    (H) FN3: ZERO(CED)

  17. 2025-05-16 1221

    (H) FN2: INDETERMINATE(REV)

  18. 2025-05-16 1221

    (H) FN1: ZERO(LWF)

  19. 2025-05-16 1221

    (H) NR: BYNUM, HANNAN, TOMASZEWSKI, JOSEPHSON, SCHRAGE

  20. 2025-05-16 1221

    (H) DNP: ALLARD

  21. 2025-05-16 1221

    (H) DP: STAPP, GALVIN, FOSTER

  22. 2025-05-16 1221

    (H) FIN RPT 3DP 1DNP 5NR

  23. 2025-05-14 Min

    (H) Minutes (HFIN)

  24. 2025-05-14 Text

    (H) Moved SB 96 Out of Committee -- Recessed to 5/15 at 9:00 am --

  25. 2025-05-14 Text

    (H) FINANCE at 01:30 PM ADAMS 519

  26. 2025-05-13 Min

    (H) Minutes (HFIN)

  27. 2025-05-13 Text

    (H) Heard & Held -- Recessed to a Call of the Chair --

  28. 2025-05-13 Text

    (H) FINANCE at 01:30 PM ADAMS 519

  29. 2025-05-12 Text

    (H) -- Public Testimony -- -- MEETING CANCELED --

  30. 2025-05-12 Text

    (H) FINANCE at 01:30 PM ADAMS 519

  31. 2025-05-07 1030

    (H) FIN

  32. 2025-05-07 1030

    (H) READ THE FIRST TIME - REFERRALS

  33. 2025-05-05 1133

    (S) VERSION: SB 96

  34. 2025-05-05 1133

    (S) TRANSMITTED TO (H)

  35. 2025-05-05 1129

    (S) EFFECTIVE DATE(S) SAME AS PASSAGE

  36. 2025-05-05 1128

    (S) PASSED Y18 N1 E1

  37. 2025-05-05 1128

    (S) READ THE THIRD TIME SB 96

  38. 2025-05-02 1092

    (S) ADVANCED TO THIRD READING 5/5 CAL

  39. 2025-05-02 1092

    (S) READ THE SECOND TIME

  40. 2025-05-02 1092

    (S) RULES TO CALENDAR 5/2/2025

  41. 2025-05-02 1086

    (S) FN3: ZERO(CED)

  42. 2025-05-02 1086

    (S) FN2: INDETERMINATE(REV)

  43. 2025-05-02 1086

    (S) FN1: ZERO(LWF)

  44. 2025-05-02 1086

    (S) NR: KAUFMAN, CRONK, MERRICK

  45. 2025-05-02 1086

    (S) DP: OLSON, STEDMAN, HOFFMAN, KIEHL

  46. 2025-05-02 1086

    (S) FIN RPT 4DP 3NR

  47. 2025-05-01 Min

    (S) Minutes (SFIN)

  48. 2025-05-01 Text

    (S) Moved SB 96 Out of Committee

  49. 2025-05-01 Text

    (S) FINANCE at 09:00 AM SENATE FINANCE 532

  50. 2025-04-25 Min

    (S) Minutes (SFIN)

  51. 2025-04-25 Text

    (S) Heard & Held

  52. 2025-04-25 Text

    (S) FINANCE at 09:00 AM SENATE FINANCE 532

  53. 2025-03-26 619

    (S) FN3: ZERO(CED)

  54. 2025-03-26 619

    (S) FN2: INDETERMINATE(REV)

  55. 2025-03-26 619

    (S) FN1: ZERO(LWF)

  56. 2025-03-26 619

    (S) NR: MERRICK

  57. 2025-03-26 619

    (S) DP: BJORKMAN, DUNBAR, GRAY-JACKSON, YUNDT

  58. 2025-03-26 619

    (S) L&C RPT 4DP 1NR

  59. 2025-03-24 Min

    (S) Minutes (SL&C)

  60. 2025-03-24 Text

    (S) Moved SB 96 Out of Committee

  61. 2025-03-24 Text

    (S) LABOR & COMMERCE at 01:30 PM BELTZ 105 (TSBldg)

  62. 2025-03-14 Min

    (S) Minutes (SL&C)

  63. 2025-03-14 Text

    (S) Heard & Held

  64. 2025-03-14 Text

    (S) LABOR & COMMERCE at 01:30 PM BELTZ 105 (TSBldg)

  65. 2025-02-12 242

    (S) L&C, FIN

  66. 2025-02-12 242

    (S) READ THE FIRST TIME - REFERRALS

Official Summary Text

CHILD CARE: TAX CREDITS
An Act relating to education tax credits for certain payments and contributions for child care and child care facilities; relating to the insurance tax education credit, the income tax education credit, the oil or gas producer education credit, the property tax education credit, the mining business education credit, the fisheries business education credit, and the fisheries resource landing tax education credit; providing for an effective date by amending the effective date of secs. 1, 2, and 21, ch. 61, SLA 2014; and providing for an effective date.

Current Bill Text

Read the full stored bill text
Enrolled SB 96
LAWS OF ALASKA

2025

Source Chapter No.
SB 96 _______

AN ACT

Relating to education tax credits for certain payments and cont ributions for child care and
child care facilities; relating to the insurance tax education credit, the income tax education
credit, the oil or gas producer e ducation credit, the property tax education credit, the mining
business education credit, the fi sheries business education cre dit, and the fisheries resource
landing tax education credit; providing for an effective date b y amending the effective date of
secs. 1, 2, and 21, ch. 61, SLA 2014; and providing for an effective date.

_______________

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:

THE ACT FOLLOWS ON PAGE 1

-1- Enrolled SB 96

AN ACT

Relating to education tax credits for certain payments and cont ributions for child care and 1
child care facilities; relating to the insurance tax education credit, the income tax education 2
credit, the oil or gas producer e ducation credit, the property tax education credit, the mining 3
business education credit, the fi sheries business education cre dit, and the fisheries resource 4
landing tax education credit; providing for an effective date b y amending the effective date of 5
secs. 1, 2, and 21, ch. 61, SLA 2014; and providing for an effective date. 6
_______________ 7
* Section 1. AS 21.96.070(a) is amended by adding new paragraphs to read: 8
(11) expenditures made to operate a child care facility in the state for 9
the children of the taxpayer's employees; 10
(12) contributions of cash or equi pment accepted by a child ca re 11
facility in the state operated by a nonprofit corporation and a ttended by one or more 12

Enrolled SB 96 -2-
children of the taxpayer's employees; and 1
(13) a payment to an employee of the taxpayer made by the taxp ayer 2
for the purpose of offsetting the employee's child care costs incurred in the state. 3
* Sec. 2. AS 21.96.070 is amended by adding a new subsection to read: 4
(i) Beginning January 1, 2030, and every five years thereafter , the Department 5
of Labor and Workforce Development shall adjust the dollar limi t on credits under (d) 6
of this section for inflation, using 100 percent of the change over the preceding five 7
calendar years in the Consumer Price Index for all urban consum ers for urban Alaska, 8
compiled by the Bureau of Labor Statistics, United States Department of Labor. 9
* Sec. 3. AS 43.20.014(a) is amended by adding new paragraphs to read: 10
(17) expenditures made to operate a child care facility in the state for 11
the children of the taxpayer's employees; 12
(18) contributions of cash or equi pment accepted by a child ca re 13
facility in the state operated by a nonprofit corporation and a ttended by one or more 14
children of the taxpayer's employees; and 15
(19) a payment to an employee of the taxpayer made by the taxp ayer 16
for the purpose of offsetting the employee's child care costs incurred in the state. 17
* Sec. 4. AS 43.20.014 is amended by adding a new subsection to read: 18
(i) Beginning January 1, 2030, and every five years thereafter , the Department 19
of Labor and Workforce Development shall adjust the dollar limi t on credits under (d) 20
of this section for inflation, using 100 percent of the change over the preceding five 21
calendar years in the Consumer Price Index for all urban consum ers for urban Alaska, 22
compiled by the Bureau of Labor Statistics, United States Department of Labor. 23
* Sec. 5. AS 43.55.019(a) is amended by adding new paragraphs to read: 24
(12) expenditures made to operate a child care facility in the state for 25
the children of the producer's employees; 26
(13) contributions of cash or equi pment accepted by a child ca re 27
facility in the state operated by a nonprofit corporation and a ttended by one or more 28
children of the producer's employees; and 29
(14) a payment to an employee of the producer made by the prod ucer 30
for the purpose of offsetting the employee's child care costs incurred in the state. 31

-3- Enrolled SB 96
* Sec. 6. AS 43.55.019 is amended by adding a new subsection to read: 1
(j) Beginning January 1, 2030, and every five years thereafter , the Department 2
of Labor and Workforce Development shall adjust the limit under (d) of this section 3
for inflation, using 100 percent of the change over the precedi ng five calendar years in 4
the Consumer Price Index for all urban consumers for urban Alas ka, compiled by the 5
Bureau of Labor Statistics, United States Department of Labor. 6
* Sec. 7. AS 43.56.018(a) is amended by adding new paragraphs to read: 7
(12) expenditures made to operate a child care facility in the state for 8
the children of the property owner's employees; 9
(13) contributions of cash or equi pment accepted by a child ca re 10
facility in the state operated by a nonprofit corporation and a ttended by one or more 11
children of the property owner's employees; and 12
( 1 4 ) a p a y m e n t t o a n e m p l o y e e o f the property owner made by th e 13
owner for the purpose of offsetting the employee's child care c osts incurred in the 14
state. 15
* Sec. 8. AS 43.56.018 is amended by adding a new subsection to read: 16
(i) Beginning January 1, 2030, and every five years thereafter , the department 17
shall adjust the dollar limit on credits under (d) of this sect ion for inflation, using 100 18
percent of the change over the preceding five calendar years in th e Co ns u me r Pr ic e 19
Index for all urban consumers fo r urban Alaska, compiled by the Bureau of Labor 20
Statistics, United States Department of Labor. 21
* Sec. 9. AS 43.65.018(a) is amended by adding new paragraphs to read: 22
(17) expenditures made to operate a child care facility in the state for 23
the children of the person's employees; 24
(18) contributions of cash or equi pment accepted by a child ca re 25
facility in the state operated by a nonprofit corporation and a ttended by one or more 26
children of the person's employees; and 27
(19) a pay ment to an employ ee of the person's business made by the 28
person for the purpose of offsetting the employee's child care costs incurred in the 29
state. 30
* Sec. 10. AS 43.65.018 is amended by adding a new subsection to read: 31

Enrolled SB 96 -4-
(i) Beginning January 1, 2030, and every five years thereafter , the department 1
shall adjust the dollar limit on credits under (d) of this sect ion for inflation, using 100 2
percent of the change over the preceding five calendar years in th e Co ns u me r Pr ic e 3
Index for all urban consumers fo r urban Alaska, compiled by the Bureau of Labor 4
Statistics, United States Department of Labor. 5
* Sec. 11. AS 43.75.018(a) is amended by adding new paragraphs to read: 6
(17) expenditures made to operate a child care facility in the state for 7
the children of the person's employees; 8
(18) contributions of cash or equi pment accepted by a child ca re 9
facility in the state operated by a nonprofit corporation and a ttended by one or more 10
children of the person's employees; and 11
(19) a pay ment to an employ ee of the person's business made by the 12
person for the purpose of offsetting the employee's child care costs incurred in the 13
state. 14
* Sec. 12. AS 43.75.018 is amended by adding a new subsection to read: 15
(i) Beginning January 1, 2030, and every five years thereafter , the Department 16
of Labor and Workforce Development shall adjust the dollar limi t on credits under (d) 17
of this section for inflation, using 100 percent of the change over the preceding five 18
calendar years in the Consumer Price Index for all urban consum ers for urban Alaska, 19
compiled by the Bureau of Labor Statistics, United States Department of Labor. 20
* Sec. 13. AS 43.77.045(a) is amended by adding new paragraphs to read: 21
(17) expenditures made to operate a child care facility in the state for 22
the children of the person's employees; 23
(18) contributions of cash or equi pment accepted by a child ca re 24
facility in the state operated by a nonprofit corporation and a ttended by one or more 25
children of the person's employees; and 26
(19) a pay ment to an employ ee of the person's business made by the 27
person for the purpose of offsetting the employee's child care costs incurred in the 28
state. 29
* Sec. 14. AS 43.77.045 is amended by adding a new subsection to read: 30
(i) Beginning January 1, 2030, and every five years thereafter , the Department 31

-5- Enrolled SB 96
of Labor and Workforce Development shall adjust the dollar limi t on credits under (d) 1
of this section for inflation, using 100 percent of the change over the preceding five 2
calendar years in the Consumer Price Index for all urban consum ers for urban Alaska, 3
compiled by the Bureau of Labor Statistics, United States Department of Labor. 4
* Sec. 15. AS 21.96.070(a)(8), 21.96.070(a)(9), 21.96.070(a)(10), 21.96.07 0(g); 5
AS 43.20.014(a)(14), 43.20.014(a)(15), 43.20.014(a)(16), 43.20. 014(g); AS 43.55.019(a)(9), 6
43.55.019(a)(10), 43.55.019(a)(11), 43.55.019(h); AS 43.56.018( a)(9), 43.56.018(a)(10), 7
43.56.018(a)(11), 43.56.018(g); AS 43.65.018(a)(14), 43.65.018( a)(15), 43.65.018(a)(16), 8
43.65.018(g); AS 43.75.018(a)(14), 43.75.018(a)(15), 43.75.018( a)(16), 43.75.018(g); 9
AS 43.77.045(a)(14), 43.77.045(a)(15), 43.77.045(a)(16), and 43.77.045(g) are repealed. 10
* Sec. 16. The uncodified law of the State of Alaska is amended by adding a new section to 11
read: 12
RETROACTIVITY. This Act is retroactive to July 23, 2024. 13
* Sec. 17. Section 50, ch. 15, SLA 2024, is repealed. 14
* Sec. 18. Section 37, ch. 61, SLA 2014, as amended by sec. 40, ch. 101, S LA 2018, and 15
sec. 30, ch. 4, SLA 2024, is amended to read: 16
Sec. 37. Sections 1, 2, and 21, ch. 61, SLA 2014, take effect J anuary 1, 2028 17
[2029]. 18
* Sec. 19. This Act takes effect immediately under AS 01.10.070(c). 19