Bill > SB1678

This bill establishes three new tax credits for child care in Missouri, effective for tax years beginning on or after January 1, 2027, with a sunset provision six years after enactment. The "Child Care Contribution Tax Credit Act" allows taxpayers to claim a credit equal to 75% of their verified contributions to eligible child care providers or intermediaries, up to $200,000 per year, with a total state cap of $20 million annually, which can be increased by 15% for contributions to "child care deserts" (areas with limited access to child care and higher poverty or lower median incomes). The "Employer Provided Child Care Assistance Tax Credit Act" offers businesses a credit of 30% of qualified child care expenditures, such as acquiring or operating child care facilities for employees or making employer matching contributions for child care, also capped at $200,000 per taxpayer per year and a total state cap of $20 million annually, with a similar increase for child care deserts. Finally, the "Child Care Providers Tax Credit Act" allows licensed child care providers with at least three employees to claim a credit equal to their eligible employer withholding tax (taxes withheld from employee wages) and up to 30% of their capital expenditures (costs for construction or renovation of facilities), with a combined maximum credit of $200,000 per provider per year and a total state cap of $20 million annually, with the same provision for child care deserts. All credits are non-refundable and cannot be transferred, but unused credits can be carried forward for up to six years, and certain tax-exempt organizations can receive refunds. The bill also defines terms like "child care desert" and outlines procedures for verification and application with the Missouri Department of Economic Development or the Department of Elementary and Secondary Education, depending on the credit.

https://www.senate.mo.gov/26info/BTS_Web/Bill.aspx?SessionType=R&BillID=5391808