(I) PROVIDES PRODUCTIVE, SUPERVISED ACTIVITY FOR

SCHOOL-AGE CHILDREN WHEN THEY ARE NOT IN SCHOOL;

(II) COMPLIES WITH ALL APPLICABLE STATE LAWS, INCLUDING
ALL APPLICABLE LICENSING REGULATIONS; AND

(III) COMPLIES WITH ANY APPLICABLE STANDARDS OF QUALITY
DEVELOPED OR APPROVED BY THE STATE DEPARTMENT OF EDUCATION FOR
AFTER SCHOOL OPPORTUNITIES.

(4) "QUALIFYING CHILD" MEANS A DEPENDENT WHO IS UNDER THE AGE
OF 18 AND WITH RESPECT TO WHOM THE TAXPAYER IS ENTITLED TO A DEDUCTION
UNDER § 151(C) OF THE INTERNAL REVENUE CODE.

(5) (3) "QUALIFYING INDIVIDUAL" MEANS A QUALIFYING INDIVIDUAL
WITHIN THE MEANING OF § 21(B) OF THE INTERNAL REVENUE CODE.

(B) AN INDIVIDUAL WHOSE FEDERAL ADJUSTED GROSS INCOME FOR THE
TAXABLE YEAR DOES NOT EXCEED $70,000 $40,000, OR $35,000 $20,000 IN THE CASE OF
A MARRIED INDIVIDUAL FILING A SEPARATE RETURN, MAY CLAIM A CREDIT AGAINST
THE STATE INCOME TAX AS PROVIDED IN THIS SECTION FOR EXPENSES PAID BY THE
INDIVIDUAL DURING THE TAXABLE YEAR FOR THE CARE OF A QUALIFYING
INDIVIDUAL OR FOR QUALIFYING AFTER SCHOOL OPPORTUNITIES FOR QUALIFYING
CHILDREN.

(C) EXPENSES FOR THE CASE OF A QUALIFYING INDIVIDUAL MAY BE TAKEN
INTO ACCOUNT UNDER THIS SECTION ONLY IF THEY ARE ALLOWED TO BE TAKEN
INTO ACCOUNT FOR PURPOSES OF THE DEPENDENT CARE CREDIT.

(D) (1) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, THE CREDIT
ALLOWED UNDER THIS SECTION EQUALS THE DEPENDENT CARE CREDIT ALLOWED
FOR THE TAXABLE YEAR

(2) IF THE EXPENSES TAKEN INTO ACCOUNT FOR PURPOSES OF THE
DEPENDENT CARE CREDIT FOR THE TAXABLE YEAR ARE LESS THAN $4,800, THE
CREDIT ALLOWED UNDER THIS SECTION EQUALS THE SUM OF:

(I) THE DEPENDENT CARE CREDIT ALLOWED FOR THE TAXABLE

YEAR; AND

(II) 30% OF THE LESSER OF:

1. THE EXPENSES PAID BY THE INDIVIDUAL FOR
QUALIFYING AFTER SCHOOL OPPORTUNITIES FOR QUALIFYING CHILDREN, NOT
INCLUDING ANY EXPENSES TAKEN INTO ACCOUNT FOR PURPOSES OF THE
DEPENDENT CARE CREDIT; AND

2. THE AMOUNT BY WHICH $1,800 EXCEEDS THE EXPENSES

TAKEN
INTO ACCOUNT FOR PURPOSES OF THE DEPENDENT CARE CREDIT.

(C) SUBJECT TO SUBSECTION (D) OF THIS SECTION, THE CREDIT ALLOWED
UNDER THIS SECTION EQUALS THE LESSER OF: