April 24, 2026 2 min read

Lawmakers advance innovative child care tax credit package

The Missouri Chamber of Commerce and Industry remains committed to advancing legislation to address the state’s ongoing child care shortage.

This week, the Senate Emerging Issues and Professional Registration Committee heard testimony on a bill that would deal with this crisis with a market-driven approach, focusing on private investment and local solutions.

HB 2409, sponsored by Rep. Brenda Shields (R-St. Joseph), was passed out of the House earlier this session. 

“This legislation will have the dual impact of expanding the capacity of child care providers and supporting businesses that want to help their employees,” said Kara Corches, president and CEO of the Missouri Chamber of Commerce and Industry.

The three elements of HB 2409 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.

“This solution is innovative because businesses, government and parents all participate in the cost of care, making it affordable for families, stable for child care providers and creating a reliable workforce for businesses,” Shields said.

Corches noted the significant economic toll the child care crisis continues to take on the state.

“We know that Missouri’s economy loses out on more than $1.35 billion annually because of our child care crisis,” Corches said. “This bill is a comprehensive approach to address that crisis and drive new capital into our child care infrastructure.”

Committee Chair Sen. Justin Brown (R-Rolla), said, “We have tried to pass this bill for years to try and give incentives for people to go back to work when they want to join the workforce. In the businesses I run, 90 percent of the time, when we lose somebody or can’t get somebody we really want, it’s because they can’t afford the child care. And my businesses can’t afford to pay them enough to overcome that. So, from a business standpoint, this legislation is very important.”

For more information contact Missouri Chamber Vice President of Government Affairs Jared Hankinson at jhankinson@mochamber.com or call (573) 634-3511.


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