JEFFERSON CITY — A bill focused on making childcare more affordable through tax credits was heard on Tuesday by the House Committee of Economic Development.
HB 2409, introduced by Rep. Brenda Shields, R-St. Joseph, seeks to make childcare more accessible for employees in Missouri, thereby creating a reliable workforce for businesses as working parents have options for their children while they are at work.
The bill outlines three potential tax credits:
- For a parent paying for childcare, a 75% tax credit for funds paid to a childcare provider to improve the quality of childcare facilities, employee training and salaries.
- For a childcare provider, a 30% tax credit similar to the Missouri Works program for use of capital for the improvement and upkeep of facilities.
- For an employer-provided childcare assistance tax program, a 30% tax credit providing childcare services and costs in-house.
All the tax credits apply to large and small businesses, but childcare providers must register with the state to be eligible to participate in any phase of the tax credit program.
Each tax credit will be capped at $20 million from all applicants and has to be used in a childcare desert, which is an area that has a poverty rate of at least 20% and 33% of its population is not located near a childcare facility.
According to ChildCare Aware of Missouri, rural areas across Missouri are mainly affected, with 72 out of 115 counties in a childcare desert.
All of the tax credits will be processed through the Office of Childhood Development and will have a six-year lifespan.
"This isn't government creating childcare, but it's local businesses, churches, family houses, group homes, who will create the care that their community needs," Shields said.
This is the fourth time the bill was heard by the committee. While the House has approved similar bills in recent years, they have consistently died in the Senate.
In Missouri, there is a 64% labor participation rate with unemployment rates of 3.9.
House members say they are seeking to increase the labor participation rate by providing more options for childcare so working parents don't have to decrease their time in the workforce because of childcare concerns.
According to Shields, Missouri loses $1.35 billion in revenue each year because of the lack of childcare as working parents prioritize their children's needs over work.
"I truly believe the most important infrastructure (employers) can have for businesses and recruitment to our state is where we say, 'If you come to our state we can take care of your employees' children,'" Shield said.