HB269--TAXCREDITSFORCHILDCARE
SPONSOR: Shields
CHILDCARECONTRIBUTIONTAXCREDITACT
Thisbillestablishesthe"ChildCareContributionTaxCreditAct".
BeginningJanuary1,2026,ataxpayermayclaimataxcreditfor
verifiedcontributionstoachildcareproviderinanamountupto
75%ofthecontribution. Thetaxcreditissuedshallnotbeless
than$100,andshallnotexceed$200,000pertaxyear.
AchildcareproviderorintermediarymustapplytotheDepartment
ofEconomicDevelopmentusingtheDepartment'sapprovedform.The
Departmentmakesadeterminationoneligibility,entersintoan
agreementwiththechildcareprovider,whowouldthenreceivea
taxcredit.Achildcareproviderorintermediarywhoreceivesa
contributionmustfileacontributionverificationwiththe
Departmentasfurtherexplainedinthebill.
Tobeeligibleforthetaxcredit,acontribution:
(1)Isuseddirectlybyachildcareprovidertopromotechild
careforchildren12yearsofageoryounger;
(2)Ifmadetoanintermediary,distributedinfullbythe
intermediarywithintwoyearsofreceipttooneormorechildcare
providers;
(3)Ismadetoachildcareproviderinwhichthetaxpayerora
personrelatedtothetaxpayerdoesnothaveadirectfinancial
interest;and
(4)Isnotmadeinexchangeforcareofachildorchildreninthe
caseofanindividualtaxpayerthatisnotanemployermakinga
contributiononbehalfofitsemployees.
Thetaxcreditsauthorizedbythissectionarenotrefundableand
cannotbetransferred,sold,orotherwiseconveyed. Theamountof
taxcreditsauthorizedmustnotexceed$20millionforeach
calendaryear.Ifthemaximumamountoftaxcreditsallowedinany
calendaryearisauthorized,themaximumamountoftaxcreditsmust
beincreasedby15%,providedthatallsuchincreasesoftax
creditsmustbereservedforcontributionsmadetochildcare
providerslocatedina"childcaredesert",asdefinedinthebill.
Taxcreditsallowedunderthissectionareconsidereda"domestic
andsocialtaxcredit"undertheprovisionsoftheTaxCredit
Accountability Act. TheprogramsunsetsDecember31,2031.
EMPLOYERPROVIDEDCHILDCAREASSISTANCETAXCREDITACT
Thisbillalsoestablishesthe"EmployerProvidedChildCare
AssistanceTaxCreditAct".BeginningJanuary1,2026,ataxpayer
withtwoormoreemployeesmayclaimataxcreditinanamount
equalto30%ofthequalifiedchildcareexpenditurespaidor
incurredwithrespecttoachildcarefacility. Themaximumamount
ofanytaxcreditissuedmustnotexceed$200,000pertaxpayerper
taxyear.
Forthepurposesofthisprovision,"taxpayer"isdefinedasa
corporationdefinedinChapter143,RSMo;anycharitable
organizationexemptfromFederalincometaxandwhoseMissouri
unrelatedbusinesstaxableincome,ifany,wouldbesubjecttothe
StateincometaxunderChapter143;orindividualsorpartnerships
subjecttothestateincometaximposedbytheprovisionsof
Chapter143.
Afacilitywillnotbetreatedasachildcarefacilitywith
respecttoataxpayerunlessenrollmentinthefacilityisopento
thedependentsofthetaxpayer'semployeesduringthetaxyear,
providedthatthedependentsarewithintheagerangeordinarily
caredforby,andonlyrequirealevelofcareordinarilyprovided
by,suchfacility.
Thetaxcreditscannotberefundable,transferable,sold,
assigned,orotherwiseconveyed. Theamountoftaxcreditsshall
notexceed$20millionforeachcalendaryear.Ifthemaximum
amountoftaxcreditsallowedinanycalendaryearisauthorized,
themaximumamountoftaxcreditsshallbeincreasedby15%,
providedthatallsuchincreasesoftaxcreditswillbereserved
forcontributionsforchildcarefacilitieslocatedinachildcare
desert.
Taxcreditsallowedunderthissectionareconsidereda"domestic
andsocialtaxcredit"undertheprovisionsoftheTaxCredit
Accountability Act.
TheprogramsunsetsDecember31,2031.
CHILDCAREPROVIDERSTAXCREDITACT
Thisbillalsoestablishesthe"ChildCareProvidersTaxCredit
Act".BeginningJanuary1,2026,achildcareproviderwiththree
ormoreemployeesmayclaimataxcreditinanamountequaltothe
childcareprovider'seligibleemployerwithholdingtax,andmay alsoclaimataxcreditinanamountupto30%ofthechildcare
provider'scapitalexpenditures.
Notaxcreditforcapitalexpenditureswillbeallowedifthe
capitalexpendituresarelessthan$1,000.Theamountofanytax
creditissuedmustnotexceed$200,000perchildcareproviderper
taxyear.
Toclaimataxcreditforcapitalexpenditures,achildcare
providermustpresentproofacceptabletotheDepartmentof
ElementaryandSecondaryEducationthattheexpendituresfall
withinthedefinitionof"capitalexpenditure",asdefinedinthe
bill.
Thetaxcreditsarenotrefundableandcannotbetransferred,sold,
assigned,orotherwiseconveyed. Anyamountofcreditthatexceeds
thechildcareprovider'sStatetaxliabilityforthetaxyearfor
whichthetaxcreditisissuedmaybecarriedforwardtothechild
careprovider'simmediatelypriortaxyearorcarriedforwardto
thechildcareprovider'ssubsequenttaxyearforuptosix
succeedingtaxyears.Theamountoftaxcreditsauthorized
pursuanttothissectionmustnotexceed$20millionforeach
calendaryear.
Ifthemaximumamountoftaxcreditsallowedinanycalendaryear
isauthorized,themaximumamountoftaxcreditswillbeincreased
by15%,providedthatallsuchincreasesoftaxcreditsshallbe
reservedforcontributionsmadetochildcareproviderslocatedin
achildcaredesert.
TheprogramsunsetsDecember31,2031.
ThisbillisthesameasSSSB742(2024)andsimilartoHB870
andSB509(2023).