Senator Janet Nguyen is proud to announce that the Senate’s Governance and Finance Committee has unanimously approved her bill SB 268, which provides a tax break to more working parents. Specifically, the bill would allow working families with incomes of $250,000 a year or less to receive a deduction in the qualifying expenses used to calculate child tax credits. Under SB 268, the qualifying income will increase from $100,000 to $250,000, thereby increasing the number of families eligible to receive tax credits for child care costs.
With the cost of child care reaching an average of $12,068 a year for one infant, Senator Nguyen acknowledges that families are struggling to afford child care, which impacts their ability to go back to work or maintain a job.
“As a working mother of two, I understand the financial pressures that come with child care expenses,” said Senator Janet Nguyen. “Securing quality care for our children while we are at work is of utmost importance for any parent. By expanding this credit, we also expand this opportunity for more families.”
Giving more working families a tax break will help alleviate the high cost of child care in an a State that has a high cost of living. Senator Nguyen hopes to assist all families, especially those where both parents work and where there is no other option but to pay for childcare.
“With the cost of child care at approximately 20 percent of the total household income, I hope that SB 268 will aid working parents, especially young professionals and mothers so that they can have access to affordable child care and are not forced to quit their jobs to care for their children,” said Senator Janet Nguyen.
The First 5 Association of California, Learning Care Work, Inc. and North Valley Caring Services have all expressed support for SB 268. The bill will now be heard in the Senate Appropriations Committee. If it passes, the bill will then go to the Senate floor for a vote by all members.