MO HB1488

Creates three new child care tax credits effective January 1, 2025: a 75% credit for contributions to child care providers or intermediaries (Section 135.1310), a 30% credit for employer child care expenditures (Section 135.1325), and a credit for child care providers equal to their eligible employer withholding tax plus up to 30% of capital expenditures (Section 135.1350).

Caps each of the three tax credit programs at $20 million per calendar year, with a 15% increase allowed if the cap is reached, provided the additional credits are reserved for child care deserts — defined as high-poverty or low-income census tracts with limited proximity to child care providers.

Limits individual tax credit amounts to $200,000 per taxpayer per tax year for each program; credits are non-refundable and non-transferable, but may be carried forward up to six succeeding tax years. Organizations exempt under 26 U.S.C. Section 501(c)(3) are eligible for refunds regardless of state tax liability.

Prohibits taxpayers from claiming credits under multiple sections for the same contribution or expenditure, and requires contributions to be used solely for promoting child care for children age 12 or younger, including facility improvements, staff salaries, training, and service quality.

All three programs expire on December 31, 2030, unless reauthorized by the General Assembly, and are administered by the Missouri Department of Economic Development (contributions and employer credits) or the Department of Elementary and Secondary Education (provider credits).