Act 987 of 1993, as amended by Act 850 of 1995, allows an income tax credit of 3.9% of the annual salary of personnel employed exclusively for providing child care services to the business's employees, or a $5,000 income tax credit for the first tax year the business provides its employees with a child care facility. The credit is first available for use in the taxable year following the year the business makes payment of wages to childcare workers. Any unused credit may be carried forward two (2) years. To be eligible, the company must obtain a certification from the Arkansas Department of Education qualifying the facility as having an appropriate early childhood program.
To claim the credit authorized by this program, attach to the tax return a copy of the certificate of approval issued by the Department of Education.