California Affordable Child Care Act proposes a temporary tax on high-income individuals and corporations to fund childcare grants.

The California Affordable Child Care Act introduces a temporary tax on high-income individuals and corporations to fund grants for childcare facilities. The tax, set at 0.5 percent on income exceeding ten million dollars, applies from 2026 to 2031. Exemptions exist for those who provide on-site childcare or fully reimburse employees for childcare costs. The tax revenue will support the Affordable Childcare Reimbursement Fund, which will provide grants to licensed childcare facilities to lower rates and address child care challenges.

California Affordable Child Care Act proposes a temporary tax on high-income individuals and corporations to fund childcare grants.

The California Affordable Child Care Act introduces a temporary tax on high-income individuals and corporations to fund grants for childcare facilities. The tax, set at 0.5 percent on income exceeding ten million dollars, applies from 2026 to 2031. Exemptions exist for those who provide on-site childcare or fully reimburse employees for childcare costs. The tax revenue will support the Affordable Childcare Reimbursement Fund, which will provide grants to licensed childcare facilities to lower rates and address child care challenges.