Authorizes the "Child Care Contribution Tax Credit Act", the "Employer-Provided Child Care Assistance Tax Credit Act", and the "Child Care Providers Tax Credit", and the Supporting Use of Child Care for Economic Stability and Security (SUCCESS) Tax Credit, relating to tax credits for child care
The impact of HB 870 is expected to be significant as it is designed to facilitate tax credits for employers offering child care assistance and to support child care providers through financial incentives. The tax credits are structured to assist both childcare providers—by allowing them to claim credits for capital expenditures—and taxpayers, enabling them to deduct a percentage of contributions made to approved childcare facilities. This expansion of tax credits could lead to an increase in the availability and quality of child care services across the state, particularly in areas identified as child care deserts.
House Bill 870 introduces several new tax credit programs aimed at supporting child care in Missouri. Known as the Child Care Contribution Tax Credit Act, the Employer-Provided Child Care Assistance Tax Credit Act, and the SUCCESS Tax Credit, the bill seeks to incentivize contributions to child care providers and overall improve access to child care for working parents. This legislative effort is primarily targeted toward addressing the needs of families trying to balance work and childcare responsibilities, ultimately contributing to economic stability.
The sentiment surrounding HB 870 appears to be generally positive, with proponents highlighting the necessity of supporting families and enhancing child care accessibility as essential elements of a thriving workforce. Legislators emphasized the importance of investing in child care to ensure economic security for families, with the program seen as a beneficial step toward improving child care infrastructure in Missouri. However, there may be concerns about the bill's long-term funding and the sustainability of the tax credits as they are structured to sunset if not reauthorized.
One point of contention could revolve around the ways in which the credits are allocated and the potential administrative burden of their implementation. Stakeholders may raise questions about who qualifies for these credits, and whether low-income families will significantly benefit from them. Additionally, there could be debates on ensuring that these tax incentives truly reach underserved communities, preventing any emerging disparities in access to quality child care based on eligibility criteria.