By Ms. Richardson of Framingham, petition (accompanied by bill, House, No. 3095) of Pam Richardson and others for legislation to provide tax incentives to corporations for sharing dependent care costs of their employees by offering dependent care assistance programs as benefits.  Revenue.

The Commonwealth of Massachusetts

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PETITION OF:

Pam Richardson

Tom Sannicandro

Elizabeth A. Malia

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In the Year Two Thousand and Seven.

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An Act relative to corporations that offer day care benefits.

    Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. Section 38 of chapter 63 of the General Laws is hereby amended by inserting after section 38Q, the following section:

Section 38R. In determining the net income subject to tax under this chapter, a domestic or foreign business corporation may deduct, in addition to any other allowable deduction under this chapter, an amount equal to twenty-five per cent of the total expenditures incurred during the taxable year for dependent care assistance provided to employees through a dependent care assistance program.  Dependent care assistance program shall be defined as the payment, reimbursement, or contribution made by the corporation for expenditures incurred by or on behalf of an employee for the care of a child of the employee, an individual under the age of eleven whom the employee claims as a tax deduction, a relative over the age of seventy who resides with the employee for more than six months of the taxable year.