Business community strongly supports child care tax credits

Missouri’s economy loses an estimated $1.35 billion annually – including $280 million in lost tax revenue – because of a lack of affordable child care.

For the third straight year, a comprehensive child care tax credit package is being proposed to change that reality.

This week, the Missouri Chamber of Commerce and Industry testified in support of HB 269, sponsored by Rep. Brenda Shields (R-St. Joseph). The Missouri Chamber has been the lead advocate to address child care shortages and helped secure broad support for the legislation in the House Economic Development Committee and beyond.

Missouri Chamber President and CEO Kara Corches applauded the work of Rep. Shields.

“This bill is a top priority of the business community,” Corches said. “We know child care is not just an issue for working parents to care about. This truly is an economic and workforce issue that affects every community across the state.”

The three elements of HB 269 include:

• Child Care Contribution Tax Credit: 75% tax credit for businesses, charitable organizations and individuals on contributions to a licensed or registered child care provider.
• Employer-Provided Child Care Assistance Tax Credit: 30% tax credit on eligible child care expenditures for employers’ on-site or off-premises child care for employees.
• Child Care Providers Tax Credit: Credit for payroll tax withholdings for employees or eligible capital improvements to a child care facility.

“There are 94 counties in Missouri that qualify as child care deserts,” Shields said. “That means there is only one slot for every three children under the age of five.”

Corches said research shows 9% of parents have voluntarily left their jobs due to child care issues, while 80% of business leaders say they can’t find workers due to a lack of child care options.

The issue also has broad public support. A poll conducted by the Missouri Champion of Children Coalition found nearly 90% of Missouri voters believe increasing access to child care will help more parents succeed in the workplace.  

Representatives from the Greater Kansas City Chamber of Commerce, Springfield Area Chamber of Commerce and Columbia Chamber of Commerce, along with Missouri Chamber members CoxHealth and JE Dunn, gave testimony in support of Shields’ bill.

This legislation received bipartisan support in 2023 and 2024, but it was one of many bills blocked by a small group of legislators who brought Senate action to a halt in the final days of those sessions.

A companion bill in the Senate, SB 455, is sponsored by Sen. Lincoln Hough (R- Springfield).

For more information, contact Corches at kcorches@mochamber.com or 573-634-3511.