ERIC Number: ED446202
Record Type: Non-Journal
Publication Date: 2000-Oct-11
Reference Count: N/A
TANF Funds May Be Used To Create or Expand Refundable State Child Care Tax Credits.
Center on Budget and Policy Priorities, Washington, DC.
Federal rules allow states to use Temporary Assistance for Needy Families (TANF) block grant funds to help pay for a child care tax credit. States also have the option to count a portion of the cost of a child care tax credit toward their "maintenance of effort" requirements under the TANF program. There is an important limitation on using welfare finds for child care credits, however. Federal regulations require that any tax credit financed under the TANF program must be "refundable," one that gives a family a payment when the credit amount exceeds a family's tax liability. The regulations specifically provide that welfare funds may be used only for the portion of a credit that exceeds a family's tax liability. Some issues related to the use of TANF funds for refundable child care credits are explored, and some state initiatives are described. (SLD)
Publication Type: Reports - Descriptive
Education Level: N/A
Authoring Institution: Center on Budget and Policy Priorities, Washington, DC.
Identifiers - Laws, Policies, & Programs: Temporary Assistance for Needy Families