1. (a) It is the purpose of this part to set the general guidelines for the operation of Better Beginnings.

2. (b)

   1. (1) Providers who choose to receive funding from the Child Care and Development Fund Block Grant must be a Better Beginnings participant at the level determined by the Office of Early Childhood.
   2. (2) This system is intended to certify quality status to childcare facilities that meet Better Beginnings requirements as set forth in this part.

3. (c) Designation of certified status for any childcare facility will qualify taxpayers for the following:

   1. (1)

      1. (A) Under Acts 1993, No. 820, corporations that build and equip a certified childcare center will be exempt from the state compensating tax levied by the Arkansas Compensating Tax Act of 1949, Arkansas Code § 26-53-101 et seq.
      2. (B) Construction materials and furnishings purchased for use in the initial construction and equipping of a childcare center for the exclusive purpose of providing childcare to the corporation’s employees will be subject to this exemption;
   2. (2) Under Acts 1993, No. 820, a business that qualifies for the exemption from the gross receipts tax under Arkansas Code § 26-52-401(29) shall be allowed an income tax credit of three and nine-tenths percent (3.9%) of the annual salary of employees employed exclusively in providing childcare services; and
   3. (3) Under Acts 1993, No. 1268, enhanced income tax credits in the amount of twenty percent (20%) of the federal childcare credit as allowed under Section 21 of the Internal Revenue Code will be available to qualified taxpayers who incur childcare expenses at childcare facilities that are certified at Better Beginnings level two (2) or above.

Codification Notes: Section 21 of the Internal Revenue Code is codified at 26 U.S.C. § 21.