Rep. Shields files third child care tax package

By Kirsten Stokes

Missouri State Representative, Brenda Shields, (R-St. Joseph) pre-filed a tax incentive package for the third time addressing the childcare shortage in Missouri for the upcoming legislative session.

The past two legislative sessions have been successful for the package in the House, but have run stale with the Senate.

With 89 out of 115 counties considered child care deserts in the state, Shields said this bill is necessary for childcare services to improve.

“We lost 30% of our child care, facilities and slots during the pandemic, and we’re slowly trying to grow those back that to grow them back,” Shields said. “We need some help and some incentives, to grow those slots.”

The package includes the Child Care Contribution Tax Credit, eligible to all Missourians. This would provide up to 75% tax credit back on taxes when contributing to a childcare business.

“If they’re trying to find quality care for their employees, they could contribute to a child care provider and get a 75% tax credit back to make sure that provider is able to stay open,” Shields said. “So, their employees can have a place for their children to go.”

The Employer Provided Child Care Assistance Tax Credit Act is a 30% tax credit designed for non-child care businesses, but have employees with children who need childcare.

“They[employer] might go to an existing childcare business in our community and say, if you’re willing to hold ten slots for my employees and they[employer] pay a portion of that care, possibly for their employees, they get a 30% tax credit,” Shields said.

The last part of the package is The Child Care Providers Tax Credit Act intended for childcare providers to claim a 30% expenditure or employee pay raise.

“If they have at least three employees that work a minimum of ten hours a week, they can keep the payroll tax and give it back to the employees in a raise,” Shields said.

Shields said she is hopeful the legislation would ease the childcare shortage in Missouri by allowing businesses to participate. Shields said the U.S. Chamber of Commerce was commissioned to provide data that supports this bill and that data came from the Department of Elementary and Secondary Education.

“We know that the parents are really struggling to find quality, safe, reliable and affordable care for them to return to work and we want parents to have a choice.” Shields said.