Missouri Chamber applauds House passage of child care tax credits

Workers, companies, state’s economy in position to benefit from child care legislation

JEFFERSON CITY, Mo – A lack of available and affordable child care options has proven costly for Missouri residents and the state in recent years. Legislation to address that challenge passed the House today, with bipartisan support, in a 113-39 vote.

The Missouri Chamber of Commerce and Industry strongly supports HB 1488, sponsored by Rep. Brenda Shields (R-St. Joseph). 

“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 government 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 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.

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.

“We applaud Rep. Brenda Shields for her leadership on this issue. We encourage the Senate to act swiftly and for the state to put these important provisions into law,” Corches added. “This legislation has the dual impact of expanding the capacity of child care infrastructure and supporting businesses that want to help their employees.”

The Missouri Chamber of Commerce and Industry is the largest business association in Missouri. Together with the Missouri Chamber Federation, the Missouri Chamber represents more than 75,000 employers. To learn more, go to www.mochamber.com, or follow us @MissouriChamber on Twitter.