HB 2939 Summary

• Creates premium tax credit for insurers that provide employer child care, allowing 25% credit on qualified expenditures up to $100,000 annually, applicable to taxable years 2026-2030.

• Establishes income tax credits for small businesses (under 100 employees) and other employers providing child care, with credits up to $100,000 annually and aggregate caps of $1,000,000 per fiscal year through 2030.

• Creates out-of-school time grant program within Department of Economic Security to expand child care access for children ages 5-12 when school is not in session, funded with $3,000,000 annually for fiscal years 2026-2030.

• Requires preapproval process for tax credits with priority given to programs serving highest number of children per dollar of credit; credits prioritized on first-come basis if equal impact.

• All new tax credits and grant program expire June 30, 2030; requires annual reporting to governor and legislature on children served, facilities created, and employee retention rates.