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Saturday, November 23, 2024

Child care tax credit package moves forward in Senate

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Daniel P. Mehan, President and CEO | Missouri Chamber of Commerce and Industry

Daniel P. Mehan, President and CEO | Missouri Chamber of Commerce and Industry

The Senate Governmental Accountability Committee has advanced a groundbreaking legislative package aimed at enhancing the capacity of child care providers and facilitating businesses in offering child care benefits to bolster employee retention and recruitment. The bill, HB 1488 sponsored by Rep. Brenda Shields (R-St. Joseph) and its Senate companion, SB 742 sponsored by Sen. Lauren Arthur (D-Kansas City), are now awaiting action by the full Senate after gaining committee approval.

Kara Corches, vice president of governmental affairs for the Missouri Chamber, emphasized the significance of the legislation by pointing out, "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." She further highlighted the economic impact, stating, "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 proposed package consists of three key elements, including a Child Care Contribution Tax Credit, an Employer-Provided Child Care Assistance Tax Credit, and a Child Care Providers Tax Credit, all designed to incentivize and support investments in child care services.

The Missouri Chamber of Commerce and Industry has thrown its weight behind the legislation, with Corches noting the widespread support for the initiative, with nearly 90% of Missouri voters believing that increasing access to child care will enhance parental success in the workplace.

Testimonies during the hearing on Shields' bill included various groups and organizations such as the City of Kansas City, the Greater Kansas City Chamber of Commerce, United WE, Missouri Hospital Association, and Saint Luke’s Health System, all expressing support for the proposed measures.

For further information on the legislative package, interested parties are encouraged to contact Kara Corches at kcorches@mochamber.com or (573) 634-3511.

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