HB 34 -- STATE INCOME TAX (Bland)

This bill authorizes a state income tax credit equal to 10% of
certain expenditures made in making child care service available
to employees of the taxpayer.  To qualify for the credit the
taxpayer must provide subsidized child care services based on
need, not discriminate based on race, creed, religion or
national origin, and use a licensed child care facility.

The credit may be taken for tax year 1998 and thereafter.  And
any excess unused credit may be carried forward to future tax
years.

FISCAL NOTE:  Estimated Net Cost to General Revenue Fund of
$2,367 in FY 1998, $14,498,855 to $28,997,709 in FY 1999, &
$14,933,821 to $29,867,641 in FY 2000.

HB 34 -- INCOME TAX CREDIT--CHILD CARE FACILITIES

SPONSOR:  Bland

COMMITTEE ACTION:  Voted "do pass" by the Committee on Children,
Youth & Families by a vote of 14 to 0.

This bill authorizes a state income tax credit equal to 10% of
certain expenditures made in making child care service available
to employees of the taxpayer.  To qualify for the credit the
taxpayer must provide subsidized child care services based on
need, not discriminate based on race, creed, religion or
national origin, and use a licensed child care facility.

The credit may be taken for tax year 1998 and thereafter.  And
any excess unused credit may be carried forward to future tax
years.

FISCAL NOTE:  Estimated Net Cost to General Revenue Fund of
$2,367 in FY 1998, $14,498,855 to $28,997,709 in FY 1999, &
$14,933,821 to $29,867,641 in FY 2000.

PROPONENTS:  Supporters say that this bill encourages employers
to provide child care facilities for children of employees.
Because many employers are likely to provide on-site child care
facilities, parents and children will have the opportunity to
spend more time together.  Encouraging employers to provide
child care facilities will be important as society moves people
from the welfare rolls to work.

Testifying for the bill were Representative Bland; and
Associated Industries of Missouri

OPPONENTS:  There was no opposition voiced to the committee.

Katharine Hickel, Research Analyst

HB 34 -- State Income Tax

Sponsor:  Bland

This bill authorizes a state income tax credit equal to 10% of
certain expenditures made in making child care service available
to employees of the taxpayer.  To qualify for the credit the
taxpayer must provide subsidized child care services based on
need, not discriminate based on race, creed, religion or
national origin, and use a licensed child care facility.

The credit may be taken for tax year 1998 and thereafter.  And
any excess unused credit may be carried forward to future tax
years.