School Readiness Tax Credits

In 2007, the Louisiana Legislature passed Act 394, which enacted Revised Statutes 47:6101-6109 to provide a package of tax credits known as the School Readiness Tax Credits. These credits allow tax breaks to families, child care providers, child care directors and staff, and businesses that support child care in an effort to encourage child care facilities to voluntarily participate in the quality rating program administered by the Louisiana Department Education (LDE) under the name of Quality Start Child Care Rating System. The Quality Start web site also includes a search feature that can be used to determine the quality rating for child care centers located in parishes throughout the state.

The School Readiness Tax Credits, which are effective for income tax years beginning on or after January 1, 2008, and franchise tax years beginning on or after January 1, 2009, are as follows:

Child Care Expense Tax Credit — R.S. 47:6104

Child Care Provider Tax Credit — R.S. 47:6105

Credit for Child Care Directors and Staff — R.S. 47:6106

Tax Credit for Business-supported Child Care — R.S. 47:6107

Tax credit for Donations to Resource and Referral Agencies — R.S. 47:6107

To provide additional guidance for the School Readiness Tax Credits, the Louisiana Department of Revenue (LDR) and Louisiana Department of Children and Family Services (DCFS) adopted LAC 61:I.1903 .