Missouri Chamber applauds House passage of child care tax credits

The Missouri Chamber of Commerce and Industry praised House lawmakers on the passage of HB 269, legislation that will increase access to safe, affordable, high-quality child care. The bill is sponsored by Rep. Brenda Shields (R-St. Joseph).

“This bill is a top priority of the business community,” said Kara Corches, president and CEO of the Missouri Chamber. “Missouri’s child care network is critical infrastructure. We applaud Rep. Shields for sponsoring the bill, as well as Gov. Mike Kehoe for highlighting child care as a top priority in his State of the State address. It’s time for Missouri to become a national leader in addressing this crisis.”

Child care is not just an issue for working parents; it’s an economic issue. According to a report from the U.S. Chamber of Commerce Foundation and the Missouri Chamber, Missouri misses out on an estimated $1.35 billion annually, including $280 million in lost tax revenue, due to child care issues.

“In our most recent CEO survey, 80% of business leaders across the state said they have struggled to recruit and retain workers due to the child care shortage,” Corches said. “This legislation will have the dual impact of expanding the capacity of child care providers and supporting businesses that want to help their employees.”

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.

HB 269 now heads to the Senate for consideration.