Section 1. Education expenses; subtraction. Modifies a cross reference to clarify that amounts used to claim the dependent care credit and the education expense credit must not be used to claim expenses under the education expense subtraction. Adds expenses for prekindergarten educational programs to the expenses eligible for the subtraction. 

Section 2. Credit allowed. Adds expenses for prekindergarten educational programs to the expenses eligible for the education expense credit. Amounts used to claim the credit must not be used to claim the dependent care credit. Defines “prekindergarten educational program” as:

• Public school prekindergarten programs;
• Accredited preschools, nursery schools, and early childhood development programs licensed by DHS;
• Accredited or affiliated Montessori programs; and
• Child care programs provided by early childhood credentialed day care providers.

Effective beginning in tax year 2019.