House women's status panel backs nanny tax break
The Knesset Committee for the status of women yesterday approved a first reading of a measure providing tax breaks to families employing nannies. The Finance Ministry opposes the bill, which will cost the state NIS 6 billion if it becomes law. Previous bills that would have give tax credits to working mothers of children under five or single parents holding full-time jobs were estimated at costing NIS 2 billion. The new nanny bill was unanimously approved with support from both coalition and opposition lawmakers.
The measure, which needs the support of more than 50 MKs to become law, will give an exemption of NIS 890 (five tax credits) for the first child. Families with two working parents will be exempt NIS 712 (four tax credits) for the second child and three credits (worth NIS 534) for third and later children. A family with two working parents and three children under the age of five, will receive an exemption of NIS 2,136.
Committee chair Gideon Saar said the bill would boost workforce participation.