Vote Smart's Synopsis:

Vote to pass a bill that authorizes the "Child Care Contribution Tax Credit Act", the "Employer-Provided Child Care Assistance Tax Credit Act", and the "Child Care Providers Tax Credit", relating to tax credits for child care in Missouri.

Highlights:

• Establishes the “Child Care Contribution Tax Credit Act”, which authorizes a taxpayer to claim a tax credit for verified contributions to a child care provider in an amount up to 75% of the contribution (Sec. 135.1310). 

• Specifies that the tax credit issued cannot be less than $100, and must not exceed $200,000 per tax year (Sec. 135.1310). 

• Specifies that contributions must adhere to the following provisions (Sec. 135.1310):

• The money must be used directly by the child care provider for care of children 12 years old or younger;

• If the money is given to an intermediary, it must be distributed in full to child care providers within 2 years;

• Donations to a child care provider where the taxpayer has a direct financial interest are prohibited; and

• A person donating as an individual rather than an employer cannot use the money to finance their own child’s care.

• Establishes the "Employer-Provided Child Care Assistance Tax Credit Act", which authorizes a taxpayer with 2 or more employees to claim a tax credit in an amount equal to 30% of the qualified child care expenditures (Sec. 135.1325).

• Specifies that the tax credit issued cannot exceed $200,000 per taxpayer per tax year (Sec. 135.1325).

• Establishes the "Child Care Providers Tax Credit", which authorizes a child care provider with 3 or more employees to claim a tax credit in an amount equal to the child care provider’s eligible employer withholding tax (Sec. 135.1350). 

• Specifies that the child care provider may also claim a tax credit in an amount up to 30% of the child care provider’s capital expenditures (Sec. 135.1350). 

• Specifies that no tax credit for capital expenditures will be allowed if they are less than $1,000 and the amount of any tax credit issued must not exceed $200,000 per provider per tax year (Sec. 135.1350). 

• Specifies that for the "Child Care Contribution Tax Credit Act", the "Employer-Provided Child Care Assistance Tax Credit Act", and the "Child Care Providers Tax Credit", all of the following provisions apply (Sec. 135.1310, 135.1325, and 135.1350) : 

• The acts take effect on January 1, 2026;

• The tax credits authorized are not refundable and cannot be transferred;

• The amount of tax credits authorized must not exceed $20 million per calendar year; and 

• The acts expire on December 31, 2031.

Full Bill Text