Dec 09, 2024

Rep. Shields files child care tax package in hopes 3rd time is charm

Posted Dec 09, 2024 5:05 PM

By BRENT MARTIN

St. Joseph Post

St. Joseph state Rep. Brenda Shields once again will try to pass a tax incentive package through the Missouri legislature to address the child care shortage in the state.

Shields, a Republican, has succeeded in passing the legislation through the Missouri House the past two years, but has run into a roadblock in the Senate.

Shields has pre-filed the bill for the upcoming session; the same bill she filed the past legislative session.

“It could look slightly different by the time we hear it in committee or hear it on the floor,” Shields tells KFEQ/St. Joseph Post, noting that Sen. Lincoln Hough of Springfield has filed a companion bill in the Senate. “We truly believe this is the way that we can increase capacity and have quality, safe, affordable, reliable care for our families.”

The package contains the Child Care Contribution Tax Credit, which would provide a 75% tax credit to those investing in child care. The Employer Provided Child Care Assistance Tax Credit Act would allow a business to claim a 30% tax credit to offset the cost of child care for employees. The Child Care Providers Tax Credit Act would allow a provider to claim a 30% for capital expenditures or employee pay raises.

Each tax credit is capped at $20 million for a total of $60 million.

Shields carries the legislation once again with the belief that if passed, it would ease the child care shortage in the state.

“The business community has told us that over 50% of the time they have trouble recruiting and retaining employees,” Shields says. “And so, what it tells us, if they invest in the crisis that we have around child care first, the state will invest. The state can’t afford to fix the child care crisis on its own. It needs businesses to participate and the tax credits do that, because businesses have to participate and put the money up front first before the state pays.”

The legislation breezed to passage in the Missouri House the past two years but stalled in the Senate. Still, Shields sees an opportunity for success in the Senate in the upcoming legislative session that begins next month.

“And I remain optimistic that on the campaign trail this year that individual candidates heard that child care is a top issue for Missouri families.”

Shields acknowledges her frustration that disputes among Republicans in the Senate have prevented passage the past two years.

“If we’d passed it two years ago when it was the priority to get done, how much farther would we be down the road now?” Shields asks. “Would we be attracting businesses to our state, because we would have the solution for their employees and the child care  for their employees?”

You can follow Brent on X @GBrentKFEQ and St. Joseph Post @StJosephPost.