JEFFERSON CITY - For the third consecutive session, Missouri lawmakers are trying to establish a childcare tax credit. CQ
House Bill 269, an identical bill to the one proposed last session, aims to establish a system of childcare tax credits for childcare providers and Missouri families. CQ
The effort would create three tax credits: one which allows donors to childcare centers to receive a credit up to 75% of their donation, a second which allows employers to help pay their employees for childcare needs and a third which allows childcare providers to claim a credit up to 30% of construction expenses. CQ
The bill has seen extensive bipartisan support in previous years, being unanimously passed by the House in 2023. Former Gov. Mike Parson highlighted the issue as one he intended to act on before leaving office. CQ
Gov. Mike Kehoe, in his first State of the State address, also emphasized the need for changes in the state’s childcare laws.
“While the state can’t carry the entire burden of this issue, we can be a partner alongside families, employers, and childcare providers,” Kehoe said. “We must provide a viable path for businesses who want to offer childcare as a fringe benefit to their employees.”
“We are also including $10 million in this year’s budget to offer grant funding opportunities to support partnerships between employers, community partners, and the childcare industry to make more childcare slots available for Missouri families,” Kehoe added.
Though receiving waves of support from all branches of Missouri’s government, the effort for childcare tax credits have been stalled by Republican infighting in the Senate.
Now, with new leadership holding the reins of Missouri’s Senate, bill sponsor Rep. Brenda Shields said she hopes history will not repeat itself.
“Third time's a charm. This is the third year we've carried it. I think we've done a lot of education with members throughout the years,” Shields said. “This is an issue in which we need to work together and move forward.”
Shields did not make any changes from year to year in creating the bill’s language- arguing that the current version is as honed as its going to be.
With continued support from representatives across the aisle, Shields said it’s an issue that crosses party lines.
“Their families struggle just as much with finding that safe and reliable care as families on my side of the aisle.,” Shields said. “The lack of childcare, quality, safe, reliable childcare really crosses all of the political spectrum. And so that's why it's so easy to make it a bipartisan bill.”
Sen. Cindy O’Laughlin, R-Shelbina, is the new President Pro Tempore. Shields said that after the changes in leadership, the potential for her bill becoming law has increased.
“The Pro Tem said that she was going to have a Senate that was functional,” Shields said. “I think she's really doing a great job."
“I'm excited for its path in the Senate and I'm excited that Senator Hough (HUFF) is carrying it,” Shields added. “With the leadership they have in the Senate, I have great hopes that we can get this through.” AC
HB 269 has a long journey before reaching the governor’s desk. It must be passed on a separate vote in the House before being considered by the Senate.
