The rising cost of child care is a cause of concern for many families, including Missouri families. To address this, lawmakers have been working on a proposal, which, if approved, could offer up to $20 million in child tax credits from Missouri.

Child Tax Credits From Missouri: How It Could Help

On Wednesday, the House perfected House Bill 870, which could offer up to $20 million in child tax credits from Missouri. Rep. Brenda Shields sponsored the bill, which, if approved, would allow families to pay taxes directly to the child care provider.

“With everyone participating in the cost of care, our hope is that it lowers the cost of care so that parents can afford it, and they find it worth while if they want too,” Rep. Shields said.

The bill would also allow child care providers with more than three employees to be exempt from income tax. Additionally, the bill includes a provision that offers credit to expand and improve facilities.

It must be noted that these tax credits will be nonrefundable for for-profit businesses, but will be refundable for non-profit child care facilities. The legislation needs one more House vote to move to the Senate.

Apart from HB870, the House perfected a few more bills as well, including HB 1263. The bill allows businesses that are closed due to a government order to get extra support during that time. HB 1263 was originally introduced at the time of the pandemic, and if approved, it would now only help businesses if there were a shutdown in the future.

The House also perfected HB675, which calls for a 20% tax credit for movies that are at least partially shot in Missouri.

Another Proposal To Help Families Afford Child Care

Rep. Hannah Kelly (R-Mountain Grove) has introduced legislation to establish a state child care tax credit for parents who qualify for the federal child care tax credit. As with the federal credit, this credit would also require earned income.

Kelly’s sponsored bill (House Bill 1335), if approved, would offer tax credits for child care expenses to individuals with income up to $75,000 annually and couples with income up to $150,000 a year.

Eligible families would get $1,800 for children up to age two and $1,200 for children aged three to six. The credit would be limited to a maximum of two children per family. The average cost of child care for a family with two young children in Webster County, where Kelly serves, is over $12,000 a year.

Kelly’s sponsored bill would allow parents to select their child care provider. The child care provider doesn’t need to be licensed, but there are a few restrictions, such as, the taxpayer’s spouse can’t qualify as a daycare provider. This credit would be nontransferable and nonrefundable.

Further, Kelly noted that she supports the child tax credits from Missouri that are part of House Bill 870.

This article originally appeared on ValueWalk

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