It is enacted by the General Assembly as follows:

SECTION 1. The Title of 44-47 of the General Laws entitled "Child Day Care Assistance and Development Tax Credit" is hereby amended to read as follows:

{ADD ADULT AND ADD} CHILD DAY CARE ASSISTANCE AND DEVELOPMENT TAX CREDIT

SECTION 2. Section 44-47-1 of the General Laws in Chapter 44-47 entitled "Child Day Care Assistance and Development Tax Credit" is hereby amended to read as follows:

{ADD 44-47-1. Tax credit. -- ADD} (a) A taxpayer that pays for or provides {ADD adult or ADD} child day care services to its employees or to the employees of its commercial tenants, or that provides real property or dedicates rental space for child day care services, shall be allowed a credit, to be computed as hereinafter provided, against the tax imposed by chapters 11 and 13, except section 44-13-13, and chapters 14, 17, 30 of this title. The amount of the credit shall be:

(1) Thirty percent (30%) of the total amount expended in the state of Rhode Island during the taxable year by a taxpayer for day care services purchased to provide care for the dependent children {ADD or dependent adult family members ADD} of the taxpayer's employees or employees of commercial tenants of the taxpayer during the employees' hours of employment;

(2) Thirty percent (30%) of the total amount expended during the taxable year by a taxpayer in the establishment and/or operation of a day care facility in the state of Rhode Island used primarily by the dependent children of the taxpayer's employees or employees of commercial tenants of the taxpayer during the employees' hours of employment;

(3) Thirty percent (30%) of the total amount expended during the taxable year by a taxpayer in conjunction with one (1) or more other taxpayers for the establishment and/or operation of a day care facility in the state of Rhode Island used primarily by the dependent children of the taxpayer's employees or employees of commercial tenants of the taxpayer during that employee's hours of employment;

(4) Thirty percent (30%) of the total amount foregone in rent or lease payments related to the dedication of rental or lease space to child day care services. The amount foregone shall be the difference between fair market rental and actual rental.

(b) No credit shall be allowed pursuant to this chapter unless the child day care facility is licensed pursuant to chapter 72.1 of title 42 {DEL . DEL} {ADD , and/or the adult day care facility is certified by the department of elderly affairs. ADD}

SECTION 3. This act shall take effect January 1, 1995.