H.B. 1154

VETOES

(5) "WAGES" MEANS WAGES, WITHIN THE MEANING OF § 51(C)(1), (2),
AND (3) OF THE INTERNAL REVENUE CODE WITHOUT REGARD TO § 51(C)(4) OF THE
INTERNAL REVENUE CODE, THAT ARE PAID BY A BUSINESS ENTITY TO AN
EMPLOYEE FOR SERVICES PERFORMED IN A TRADE OR BUSINESS OF THE
EMPLOYER.

(B) (1) EXCEPT AS PROVIDED IN SUBSECTION (E) OF THIS SECTION, A
BUSINESS ENTITY MAY CLAIM A TAX CREDIT AGAINST THE STATE INCOME TAX IN
THE AMOUNTS DETERMINED UNDER SUBSECTIONS (C) AND (D) OF THIS SECTION
FOR THE WAGES AND QUALIFIED CHILD CARE EXPENSES WITH RESPECT TO A
QUALIFIED EMPLOYMENT OPPORTUNITY EMPLOYEE THAT ARE PAID IN THE
TAXABLE YEAR FOR WHICH THE BUSINESS ENTITY CLAIMS THE CREDIT.

(2) THE SAME TAX CREDIT CANNOT BE APPLIED MORE THAN ONCE
AGAINST DIFFERENT TAXES BY THE SAME TAXPAYER

(C)     FOR EACH TAXABLE YEAR, FOR THE WAGES PAID TO EACH QUALIFIED
EMPLOYMENT OPPORTUNITY EMPLOYEE, A CREDIT IS ALLOWED IN AN AMOUNT
EQUAL TO:

(1) 30% OF UP TO THE FIRST $6,000 OF THE WAGES PAID TO THE
QUALIFIED EMPLOYMENT OPPORTUNITY EMPLOYEE DURING THE FIRST YEAR OF
EMPLOYMENT;

(2) 20% OF UP TO THE FIRST $6,000 OF THE WAGES PAID TO THE
QUALIFIED EMPLOYMENT OPPORTUNITY EMPLOYEE DURING THE SECOND YEAR
OF EMPLOYMENT; AND

(3) 10% OF UP TO THE FIRST $6,000 OF THE WAGES PAID TO THE
QUALIFIED EMPLOYMENT OPPORTUNITY EMPLOYEE DURING THE THIRD YEAR OF
EMPLOYMENT.

(D)    FOR EACH TAXABLE YEAR, FOR CHILD CARE PROVIDED OR PAID FOR BY
A BUSINESS ENTITY FOR THE CHILDREN OF A QUALIFIED EMPLOYMENT
OPPORTUNITY EMPLOYEE OF THE BUSINESS ENTITY, A CREDIT IS ALLOWED IN AN
AMOUNT EQUAL TO:

(1) UP TO $600 OF THE QUALIFIED CHILD CARE EXPENSES INCURRED
FOR EACH QUALIFIED EMPLOYMENT OPPORTUNITY EMPLOYEE DURING THE FIRST
YEAR OF EMPLOYMENT;

(2) UP TO $500 OF THE QUALIFIED CHILD CARE EXPENSES INCURRED
FOR EACH QUALIFIED EMPLOYMENT OPPORTUNITY EMPLOYEE DURING THE
SECOND YEAR OF EMPLOYMENT; AND

(3) UP TO $400 OF THE QUALIFIED CHILD CARE EXPENSES INCURRED
FOR EACH QUALIFIED EMPLOYMENT OPPORTUNITY EMPLOYEE DURING THE THIRD
YEAR OF EMPLOYMENT.

(E) (1) A BUSINESS ENTITY MAY NOT CLAIM THE CREDIT UNDER THIS
SECTION FOR AN EMPLOYEE:

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