The Missouri Legislature has two weeks left in its regular session and a top priority affecting the state’s families and workforce hangs in the balance.
Gov. Mike Kehoe and several other lawmakers in both parties want to pass a childcare tax credit package this session. Is there still time?
Missourinet asked state House Speaker Jonathan Patterson, R-Lee’s Summit.
“All bills are alive in Jeff City until two weeks from tomorrow. That’s something I’d like to see get done. We’ll just see what happens,” said Patterson.
Two weeks is considered plenty of time to some people in the state legislature’s world, especially towards the end of session when there’s a mad dash to pass bills.
The childcare tax credit package is sponsored by Rep. Brenda Shields, R-St. Joseph. It would provide tax breaks to childcare providers, donors to daycares, and businesses who help to cover the childcare costs of their employees.
“We lost 30% of our childcare providers during the pandemic and only 3% have come back. So that is why we have a true shortage of childcare in our state,” Shields told Missourinet.
House Bill 269 would add a tax credit allowing those who donate to childcare providers to receive a credit equal to 75% of their donation and must not exceed $200,000 in annual tax credits.
For employers pitching in to help their workers with childcare costs, they can claim tax credits equal to 30% of qualifying expenses.
The third tax credit is intended to help childcare providers expand or upgrade their workplace. They can claim a tax credit in an amount equal to their withholding tax and can claim a tax credit in an amount up to 30% of their capital expenses, up to $200,000 annually per provider.
“We want to help incentivize our providers so that they have the funds to offer higher wages, so that we can bring people into the field,” said Shields. “I mean, 89 of Missouri’s 114 counties and the city of St. Louis are childcare deserts, which means that for every five children that need care, there’s only one slot.”
The tax credits are capped at $20 million each.
The legislative session ends May 16.
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