HB1488--TAXCREDITSFORCHILDCARE
SPONSOR: Shields
CHILDCARECONTRIBUTIONTAXCREDITACT
Thisbillestablishesthe"ChildCareContributionTaxCreditAct".
BeginningJanuary1,2025,ataxpayermayclaimataxcredit,
againsthisorherstateliabilityforthattaxyear,forverified
contributionstoachildcareproviderinanamountequalto75%of
thecontribution. Thetaxcreditissuedshallnotbelessthan
$100,andshallnotexceed$200,000pertaxyear.
Tobeeligibleforthetaxcredit,adonationmustbe:
(1)Useddirectlybyachildcareprovidertopromotechildcare
forchildren12yearsofageoryounger;
(2)Ifmadetoanintermediary,distributedinfullbysaid
intermediarywithintwoyearsofreceipttooneormorechildcare
providers;
(3)Madetoachildcareproviderorintermediaryinwhichthe
taxpayerorapersonrelatedtothetaxpayerdoesnothaveadirect
financialinterest;and
(4)Notmadeinexchangeforcareofachildorchildreninthe
caseofanindividualtaxpayerthatisnotanemployermakinga
contributiononbehalfofitsemployees.
Thetaxcreditsauthorizedbythissectionshallnotberefundable
andshallnottransferred,sold,orotherwiseconveyed. The
cumulativeamountoftaxcreditsauthorizedshallnotexceed$20
millionforeachcalendaryear.Ifthemaximumamountoftax
creditsallowedinanycalendaryearisauthorized,themaximum
amountoftaxcreditsshallbeincreasedby15%,providedthatall
suchincreasesoftaxcreditsshallbereservedforcontributions
madetochildcareproviderslocatedinachildcaredesert.
Taxcreditsallowedunderthissectionareconsidereda"domestic
andsocialtaxcredit"undertheprovisionsoftheTaxCredit
Accountability Act.
TheprogramsunsetsonDecember31,2030.
EMPLOYERPROVIDEDCHILDCAREASSISTANCETAXCREDITACT
Thisbillalsoestablishesthe"EmployerProvidedChildCare
AssistanceTaxCreditAct".BeginningJanuary1,2025,ataxpayer withtwoormoreemployeesmayclaimataxcreditinanamount
equalto30%ofthequalifiedchildcareexpenditurespaidor
incurredwithrespecttoachildcarefacility. Themaximumamount
ofanytaxcreditissuedshallnotexceed$200,000pertaxpayerper
taxyear.
Forthepurposesofthisprovision,"taxpayer"isdefinedasa
corporationdefinedinChapter143,RSMo;anycharitable
organizationexemptfromfederalincometaxandwhoseMissouri
unrelatedbusinesstaxableincome,ifany,wouldbesubjecttothe
stateincometaxunderChapter143;orindividualsorpartnerships
subjecttothestateincometaximposedbytheprovisionsof
Chapter143.
Afacilityshallnotbetreatedasachildcarefacilitywith
respecttoataxpayerunlessenrollmentinthefacilityisopento
thedependentsofthetaxpayer'semployeesduringthetaxyear,
providedthatthedependentsarewithintheagerangeordinarily
careforby,andonlyrequirealevelofcareordinarilyprovided
by,suchfacility.
Thetaxcreditsshallnotberefundable,transferable,sold,
assigned,orotherwiseconveyed. Thecumulativeamountoftax
creditsshallnotexceed$20millionforeachcalendaryear.If
themaximumamountoftaxcreditsallowedinanycalendaryearis
authorized,themaximumamountoftaxcreditsshallbeincreasedby
15%,providedthatallsuchincreasesoftaxcreditsshallbe
reservedforcontributionsmadetochildcareproviderslocatedin
achildcaredesert.
TheprogramsunsetsonDecember31,2030.
CHILDCAREPROVIDERSTAXCREDITACT
Thisbillalsoestablishesthe"ChildCareProvidersTaxCredit
Act".BeginningJanuary1,2025,achildcareproviderwiththree
ormoreemployeesmayclaimataxcreditinanamountequaltothe
childcareprovider'seligibleemployerwithholdingtax,andmay
alsoclaimataxcreditinanamountupto30%ofthechildcare
provider'scapitalexpenditures.
Notaxcreditforcapitalexpendituresshallbeallowedifthe
capitalexpendituresarelessthan$1,000.Theamountofanytax
creditissuedshallnotexceed$200,000perchildcareproviderper
taxyear.
Toclaimataxcreditforcapitalexpenditures,achildcare
providershallpresentproofacceptabletotheDepartmentof
ElementaryandSecondaryEducationthattheexpendituresfall withinthedefinitionofcapitalexpenditure,asdefinedinthe
bill.
Thetaxcreditsshallnotberefundable,transferred,sold,
assigned,orotherwiseconveyed. Anyamountofcreditthatexceeds
thechildcareprovider'sstatetaxliabilityforthetaxyearfor
whichthetaxcreditisissuedmaybecarriedbacktothechild
careprovider'simmediatelypriortaxyearorcarriedforwardto
thechildcareprovider'ssubsequenttaxyearforuptofive
succeedingtaxyears.Thecumulativeamountoftaxcredits
authorizedpursuanttothissectionshallnotexceed$20million
foreachcalendaryear.
Ifthemaximumamountoftaxcreditsallowedinanycalendaryear
isauthorized,themaximumamountoftaxcreditsshallbeincreased
by15%,providedthatallsuchincreasesoftaxcreditsshallbe
reservedforcontributionsmadetochildcareproviderslocatedin
achildcaredesert.
TheprogramsunsetsonDecember31,2030.
ThisbillissimilartoHB870(2023)andSB509(2023).