Show-Me State Times

Missouri faces an annual economic loss of approximately $1.35 billion, including $280 million in lost tax revenue, due to insufficient affordable child care options. In response, a comprehensive child care tax credit package is being proposed for the third consecutive year.

The Missouri Chamber of Commerce and Industry recently expressed support for HB 269, sponsored by Representative Brenda Shields (R-St. Joseph). The Chamber has been a leading advocate for addressing child care shortages and has garnered extensive backing for the legislation within the House Economic Development Committee and beyond.

Missouri Chamber President and CEO Kara Corches commended Rep. Shields' efforts, stating, “This bill is a top priority of the business community. We know child care is not just an issue for working parents to care about. This truly is an economic and workforce issue that affects every community across the state.”

HB 269 includes three main components:

- Child Care Contribution Tax Credit: A 75% tax credit for businesses, charitable organizations, and individuals on contributions to licensed or registered child care providers.

- Employer-Provided Child Care Assistance Tax Credit: A 30% tax credit on eligible child care expenditures for employers’ on-site or off-premises child care for employees.

- Child Care Providers Tax Credit: A credit for payroll tax withholdings for employees or eligible capital improvements to a child care facility.

Rep. Shields highlighted the severity of the issue by noting that “there are 94 counties in Missouri that qualify as child care deserts. That means there is only one slot for every three children under the age of five.”

The initiative also enjoys strong public backing; a poll by the Missouri Champion of Children Coalition revealed that nearly 90% of Missouri voters believe enhancing access to child care will aid more parents in succeeding at work.

Supporters providing testimony included representatives from the Greater Kansas City Chamber of Commerce, Springfield Area Chamber of Commerce, Columbia Chamber of Commerce, along with Missouri Chamber members CoxHealth and JE Dunn.

Although this legislation received bipartisan support in previous years (2023 and 2024), it was stalled by a small group of legislators who impeded Senate action during those sessions' final days.

A companion bill in the Senate, SB 455, is sponsored by Senator Lincoln Hough (R-Springfield).

For further details, contact Kara Corches at kcorches@mochamber.com or call 573-634-3511.