March 15, 2024 Less than a minute read

Child care tax credit package moves forward in Senate

This week, the Senate Governmental Accountability Committee passed an innovative legislative package that would increase the capacity of child care providers and help businesses offer child care benefits to support the retention and recruitment of employees.

HB 1488 is sponsored by Rep. Brenda Shields (R-St. Joseph), and the Senate companion bill, SB 742, is sponsored by Sen. Lauren Arthur (D-Kansas City). The same committee passed Arthur’s bill in January, while the full House passed Shields’ in February. Both bills now await action by the full Senate.

The Missouri Chamber of Commerce and Industry strongly supports this legislation.

“In our most recent survey, 80% of business leaders across the state said they have struggled to recruit and retain workers with the child care shortage one of the primary reasons,” said Kara Corches, vice president of governmental affairs for the Missouri Chamber. “The state’s economy loses out on an estimated $1.35 billion a year, which includes $280 million annually in lost tax revenue, because of child care issues.”

The three elements of HB 1488 and SB 742 are:

  • 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 and 30% tax credit on eligible capital improvements to a child care facility.

The issue has broad public support. Nearly 90% of Missouri voters believe increasing access to child care will help more parents succeed in the workplace.

During the hearing on Shields’ bill, several groups and organizations testified in support of the legislation, including the City of Kansas City, the Greater Kansas City Chamber of Commerce, United WE, Missouri Hospital Association and Saint Luke’s Health System.

For more information, contact Corches at or (573) 634-3511.

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