A Game Changer for Businesses and Families

Missouri is on the verge of a major step forward in addressing its child care crisis. In 2025, lawmakers are advancing a comprehensive package of child care tax credits designed to make quality care more accessible and affordable for families, while also supporting businesses and providers across the state.

What’s in the Legislation?

The centerpiece of this effort is House Bill 269, which has already passed the Missouri House with strong bipartisan support and is now under consideration in the Senate. The bill introduces three targeted tax credits:

• Child Care Contribution Tax Credit: Individuals and businesses donating to child care providers can claim up to 75% of their donation as a tax credit, incentivizing private investment in local child care infrastructure.
• Employer-Provided Child Care Assistance Tax Credit: Businesses that help pay for their employees’ child care can claim a 30% tax credit on eligible expenditures, making it easier for employers to offer this critical benefit.
• Child Care Providers Tax Credit: Providers with at least three employees can receive tax credits on payroll taxes and claim up to 30% of costs for new equipment and building investments, helping them expand and improve their services.

All three credits are capped at $200,000 per year per entity, and donations must support care for children 12 and under.

Why Does This Matter?

Missouri’s child care shortage is costing the state over $1.35 billion annually in lost productivity and tax revenue, with 80% of business leaders reporting difficulty recruiting and retaining workers due to child care challenges. By incentivizing investment from individuals, businesses, and providers, these tax credits aim to:

• Expand the number of child care slots, especially in underserved “child care deserts”
• Make it easier for parents to stay in the workforce
• Support small businesses and local economies
• Encourage employers to offer child care benefits, boosting recruitment and retention

How Businesses Can Advocate and Stay Informed

Missouri businesses have played a crucial role in advancing this legislation, and their continued advocacy is vital for final passage and successful implementation. Here’s how your business can get involved:

1. Contact Your Legislators

• Reach out to your state senator and representative to express support for HB 269 and its companion bills. Share how child care shortages impact your business and workforce.
• Invite lawmakers to visit your business or participate in roundtable discussions about workforce needs and the importance of child care.

2. Share Your Story

• Provide testimonials or case studies about how child care challenges affect your employees and operations. These real-world examples are powerful tools for influencing policy.

3. Stay Informed and Engage

• Sign up for legislative alerts to receive timely information and action steps.

Conclusion

Child care is not just a family issue—it’s an economic and community issue. Missouri’s 2025 child care tax credit legislation represents a bold, practical step toward solving the state’s child care crisis and keeping Missouri working. With strong business advocacy and community engagement, these tax credits can become a reality—benefiting families, employers, and the entire state. Interested in learning more? Contact us at cckmw@mochildcareaware.org.