House Bill Summary

SCS/HCS/HB 668 - This act modifies provisions relating to incentives for employers.

CHILD CARE CONTRIBUTION TAX CREDIT

This act establishes the "Child Care Contribution Tax Credit Act".

For all tax years beginning on or after January 1, 2024, this act authorizes a tax credit in an amount up to 75% of the taxpayer's contribution to a child care provider. A child care provider shall issue the taxpayer a contribution verification within sixty days of receiving a contribution, and shall remit such verification to the Department of Economic Development. A failure to issue a contribution verification to a taxpayer shall entitle the taxpayer to a refund of the donation.

Donations made under the act shall be used directly by a child care provider to promote child care for children 12 years of age and younger, shall not be made to a child care provider in which the taxpayer has a direct financial interest, and shall not be made in exchange for care of a child or children of the taxpayer. A child care provider that uses a contribution for an ineligible purpose shall repay to the Department the value of the tax credit used for such ineligible purpose.

Tax credits authorized by the act shall not be refundable or transferable, but may be carried back one tax year or forward for up to five tax years. Notwithstanding this provision, taxpayers that are exempt for federal tax purposes shall be eligible for a refund of any tax credits received under this act, as described in the act.

The maximum amount of tax credits that shall be authorized in a calendar year shall not exceed $20 million. If the maximum amount of tax credits is authorized in a calendar year, the maximum amount of tax credits that may be authorized in subsequent years shall be increased by 15%, provided that all such increases in the allowable amount of tax credits shall be reserved for contributions made to child care providers located in a child care desert, as such term is defined in the act.

This provision shall sunset on December 31, 2029, unless reauthorized by the General Assembly. (Section 135.1310)

This provision is identical to a provision in HCS/SS/SB 143 (2023), SCS/SB 184 (2023), SS#3/HCS/HB 268 (2023), HCS/HB 350 (2023), and HCS/HB 870 (2023), and is substantially similar to a provision in SB 509 (2023).

EMPLOYER PROVIDED CHILD CARE ASSISTANCE TAX CREDIT

This act establishes the "Employer Provided Child Care Assistance Tax Credit Act".

For all tax years beginning on or after January 1, 2023, this act authorizes a tax credit in an amount equal to 30% of qualified child care expenditures, as defined in the act, paid or incurred by an employer providing child care for its employees. The amount of the tax credit authorized under this act shall not exceed $200,000 per taxpayer per tax year. A facility shall not be considered a child care facility for the purposes of the act unless enrollment in the facility is open to employees of the taxpayer, and at least 30% of the enrollees of the facility are dependents of employees of the taxpayer if the facility is the principal business of the taxpayer.

The maximum amount of tax credits that shall be authorized in a calendar year shall not exceed $20 million. If the maximum amount of tax credits is authorized in a calendar year, the maximum amount of tax credits that may be authorized in subsequent years shall be increased by 15%, provided that all such increases in the allowable amount of tax credits shall be reserved for qualified child care expenditures for child care facilities located in a child care desert, as such term is defined in the act.

Tax credits authorized by this act shall be subject to recapture, as described in the act.

This provision shall sunset on December 31, 2029, unless reauthorized by the General Assembly. (Section 135.1325)

CHILD CARE PROVIDERS TAX CREDIT

This act establishes the "Child Care Providers Tax Credit Act".

For all tax years beginning on or after January 1, 2024, this act authorizes child care providers with three or more employees to claim a tax credit in an amount equal to the child care provider's eligible employer withholding tax, as defined in the act, and may also claim a tax credit in an amount up to 30% of the child care provider's capital expenditures, as defined in the act, provided that such capital expenditures are not less than $1,000. The amount of the tax credit authorized under this act shall not exceed $200,000 per child care provider per tax year.

A child care provider shall submit to the Department of Elementary and Secondary Education an application for the tax credit on a form to be provided by the Department. The child care provider shall provide proof of any capital expenditures for which the provider is claiming a tax credit.

The maximum amount of tax credits that shall be authorized in a calendar year shall not exceed $20 million. If the maximum amount of tax credits is authorized in a calendar year, the maximum amount of tax credits that may be authorized in subsequent years shall be increased by 15%, provided that all such increases in the allowable amount of tax credits shall be reserved for child care providers located in a child care desert, as such term is defined in the act.

This provision shall sunset on December 31, 2029, unless reauthorized by the General Assembly. (Section 135.1350)

UPSKILL CREDENTIAL GRANTS

This act creates new provisions allowing the Department of Economic Development (DED) to disburse grants to qualifying employers for each employee or prospective employee who obtains upskill credentials, as defined in the act. In order to receive such grants a qualifying employer is required to submit an application to DED, as provided in the act. Applications are evaluated on a competitive basis using the following criteria:

· The pledged average wage increase that employees or prospective employees will realize after obtaining an upskill credential in relation to the cost of obtaining the credential;

· The level of economic distress to the qualifying employer's region and the balance of awards made to the various regions of the state; and

· The contribution made by the qualifying employer toward the cost of obtaining the upskill credential.

At the close of each application period, to be determined by DED, applications will be evaluated and preliminary awards for reimbursement may be made.

In making preliminary awards of reimbursement, one-third of the awards shall be reserved for employers with 1-50 employees and one-third of the awards shall be reserved for employers with 51-200 employees. If any reserved moneys are not awarded by March 1 of the fiscal year, the moneys may thereafter be awarded to any qualifying employer.

Upon being given a preliminary award for reimbursement, each qualifying employer must sponsor a current or prospective employee to obtain an upskill credential within 12 months of the preliminary award. Employees may not commence the process of obtaining the credential until after a preliminary award has been made. Upon obtaining a credential, the employer shall submit proof of the same to DED along with proof that the individual who completed the training is a Missouri resident with a verifiable Missouri address.

The Upskill Credential Fund is established, consisting of moneys appropriated to it by the General Assembly, not exceeding $6 million in any fiscal year, as well as moneys accepted from any other source. Any funds not expended remain in the fund.

The provision shall sunset on August 28, 2029, unless reauthorized by the General Assembly. (Section 620.2500)

This provision is substantially similar to SB 53 (2023), SB 760 (2022), and HB 2550 (2022), and to a provision in SS/SCS/HCS/HB 417 (2023).

EMPLOYER CYBERSECURITY GRANTS

This act allows the Department of Economic Development (DED) to distribute one-time grants to employers for the purpose of enhancing cybersecurity, as defined in the act. Grants are limited to $15,000 per employer and require a minimum 10% match from the employer. In distributing grants, DED shall reserve fifty percent of the funding for qualifying employers with between one and fifty employees, and priority shall be given to any company contracting with the state for the purpose of protecting critical infrastructure.

DED shall create an on-line application form as part of its website which is to be the sole means of applying for grants. Employers seeking a grant must fill out the application along with documents outlining how it plans to enhance cybersecurity, including plans for how the grant money will be spent and how it plans to cover the remaining cost for its cybersecurity enhancement. The act limits the factors that DED may consider in assessing an employer's funding plans.

Applications shall be accepted by DED beginning March 1, 2024.

Any employer that receives funds pursuant to this act shall submit documentation to DED not later than one year after receiving the funds showing how the funds were spent.

The act limits the amount that may be distributed under this act to $10 million each fiscal year.

In the case of employers with employees and locations in more than one state, grant funds distributed pursuant to this act may only be used for locations in Missouri and employees residing in Missouri. (Section 620.2550)

This provision is substantially similar to SB 380 (2023), SCS/SB 674 (2022), and HB 2436 (2022).

JOSH NORBERG