Missouri Governor Mike Parson, in his State of the State speech last month, noted that child care is a priority for him. This month Rep. Brenda Shields sponsored a bill (HB 870) that offers not just one, but three different child care rebates from Missouri. Now, on Tuesday, a Missouri House committee discussed those credits that aim to improve access to affordable childcare.<\/p>\n
On Tuesday, Shields told her colleagues that these child care rebates from Missouri are needed because the child care market is in a state of crisis. A 2021 report from the U.S. Chamber of Commerce Foundation estimated that the state loses about $1.3 billion a year due to accessibility, quality and cost-related childcare issues.<\/p>\n
Further, Shields noted that of the 30% providers who went out of business at the time of the COVID-19 pandemic, only 3% have returned.<\/p>\n
\u201cI look forward to the day that we can attract businesses to Missouri,\u201d Shields said, \u201cbecause we can say that we have quality, reliable, affordable childcare for your workforce.\u201d<\/p>\n
The proposed child care rebates from Missouri enjoy the support of more than a dozen people, including representatives of state and local chambers of commerce, child advocacy groups, child care providers and anti-abortion advocacy groups.<\/p>\n
On the other hand, those against the credits question the need for such child care rebates and if it would be an efficient use of taxpayer money. Moreover, questions are also raised on the capability of credits to benefit providers and their staff.<\/p>\n
Shields\u2019 proposed legislation includes three types of child care rebates from Missouri, including for donors to child care facilities; for child care providers; and for employers who contribute toward employees\u2019 child care.<\/p>\n
Under the first rebate, called the \u201cChild Care Contribution\u201d tax credit, donors to child care providers would receive a credit equaling 75% of a qualifying donation, with a limit of $200,000.<\/p>\n
In the second credit, called the “Child Care Providers Tax Credit,” child care providers would be allowed to claim a tax credit that is equal to the provider\u2019s employer withholding tax. This credit must not exceed 30% of the provider\u2019s capital expenditures, including on expanding or renovating facilities.<\/p>\n
The last credit, called \u201cEmployer Provided Child Care Assistance,\u201d aims to establish collaboration between businesses whose employees require child care. Under this credit, employers would qualify for a 30% tax credit on qualifying childcare expenditures.<\/p>\n
Shields noted that other states have tax credits related to child care, but no state has been able to \u201cput all three of these together.\u201d<\/p>\n
Each of these proposed child care rebates from Missouri is capped at $20 million per calendar year. If the full amount is used in any year, then the cap amount for the next year would automatically increase by $3 million. These credits, if approved, would automatically expire in 2029.<\/p>\n
This article originally appeared on ValueWalk<\/i><\/p>\n
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