2018 District of Columbia Code
Title 47 - Taxation, Licensing, Permits, Assessments, and Fees. [Enacted title]
Chapter 18 - Income and Franchise Taxes.
Subchapter VI - Tax on Residents and Nonresidents.
§ 47–1806.15. Early learning tax credit.

(a) For the purposes of this section, the term:

(1) "Child development facility" shall have the same meaning as provided in § 7-2031(3).

(2) "Consumer Price Index" means the Consumer Price Index for All Urban Consumers, published by the Bureau of Labor Statistics of the Department of Labor, or any successor agency.

(3) "Eligible child" means a dependent, claimed by a taxpayer, who has not reached the age of 4 years by September 30 of the taxable year.

(4) "Eligible child care expenses" means payments made by a taxpayer to a child development facility for child care services of an eligible child during the taxable year but does not include any payments for child care services provided after August 31 of the taxable year of an eligible child who meets the age requirement for enrollment under § 38-273.02(a).

(b)(1) For taxable years beginning after December 31, 2017, a taxpayer shall be allowed a credit against the tax imposed under this subchapter for eligible child care expenses paid by the taxpayer.

(2) The amount of the credit shall be the lesser of the total amount of all eligible child care expenses paid by the taxpayer in the taxable year or $1,000 per eligible child.

(3) The credit claimed under this section in a taxable year may exceed the taxpayer's tax liability under this subchapter for that taxable year and shall be refundable to the taxpayer claiming the credit.

(c) In the case of a return made for a fractional part of a taxable year, the credit shall be reduced to an amount that bears the same ratio to the full credit provided as the number of months in the period for which the return is made to 12 months.

(d) Notwithstanding subsection (b) of this section, a taxpayer shall not be eligible to receive a credit under this section if:

(1) The taxpayer does not claim the eligible child as a dependent on the taxpayer's federal and District income tax returns for that taxable year;

(2) A person other than the taxpayer claimed the eligible child as a dependent on his or her federal and District income tax returns for that taxable year;

(3) Any child care subsidies authorized under Chapter 4 of Title 4 during the taxable year are received or paid on behalf of an eligible child of the taxpayer;

(4) A person other than the taxpayer received a credit under this section for the same taxable year for the same eligible child; or

(5) The taxpayer's District taxable income for the taxable year exceeds the following amounts for taxable year 2018 and thereafter, adjusted annually for inflation based on the Consumer Price Index:

(A) Single and head of household: $750,000;

(B) Married filing jointly: $750,000; or

(C) Married filing separately: $375,000.

(e) The Chief Financial Officer may issue rules regarding the records required to be maintained and provided by a taxpayer and a child development facility to substantiate any credits claimed under this section.

(f) The credit under this section shall not be allowed for taxable years beginning after December 31, 2018.

(Oct. 30, 2018, D.C. Law 22-168, § 7262(b), 65 DCR 9388.)

Section 7263 of D.C. Law 22-168 provided that the creation of this section by section 7262(b) of D.C. Law 22-168 shall apply as of January 1, 2018.

For temporary (90 days) creation of this section, see § 7262(b) of Fiscal Year 2019 Budget Support Congressional Review Emergency Act of 2018 (D.C. Act 22-458, Oct. 3, 2018, 65 DCR 11212).

For temporary (90 days) creation of this section, see § 7262(b) of Fiscal Year 2019 Budget Support Emergency Act of 2018 (D.C. Act 22-434, July 30, 2018, 65 DCR 8200).