HB 855 -- EMPLOYER CHILD CARE TAX CREDIT

SPONSOR:  Bland

COMMITTEE ACTION:  Voted "do pass" by the Committee on Children,
Youth and Families by a vote of 16 to 0.

The bill gives employers an income tax credit of 10% of net
expenditures on child care services for children of their
employees. No credits are allowed for an employer who
discriminates on the basis of race, creed, religion or national
origin; has an unlicensed facility; or fails to subsidize child
care on a sliding scale to parents of at least 25% of the
children served.

FISCAL NOTE:  Estimated Net Cost to General Revenue Fund of $0
in FY 97, $14,076,558 to $28,153,116 in FY 98, and $14,498,855
to $28,997,709 in FY 99.

PROPONENTS:  Supporters say that the bill encourages employers
to provide on-site child care. The result is that employees are
happier and more productive. Supporters also say that on-site
child care is beneficial to children.

Testifying for the bill were Representative Bland; Reform
Organization of Welfare; and Associated Industries of Missouri.

OPPONENTS:  There was no opposition voiced to the committee.

Ted Wedel, Research Analyst

HB 855 -- Employer Child Care Tax Credit

Sponsor:  Bland

The bill gives employers an income tax credit of 10% of monies
spent on making child care services available for children of
their employees. No credits are allowed for an employer who
discriminates on the basis of race, creed, religion or national
origin; has an unlicensed facility; or fails to subsidize child
care on a sliding scale to parents of at least 25% of the
children served.