HB 2409 — Authorizes the "Child Care Contribution Tax Credit Act", the "Employer-Provided Child Care Assistance Tax Credit Act", and the "Child Care Providers Tax Credit", relating to tax credits for child care

SECOND REGULAR SESSION [PERFECTED] HOUSE BILL NO.

5914H.01I5914H.01P JOSEPH ENGLER, Chief Clerk AN ACT To amend chapter 135, RSMo, by adding thereto three new sections relating to tax credits for child care.

SectionA.Section A.

"Contribution" shall include the reasonable purchaseEXPLANATION price— paidMatter forenclosed anin employer'sbold-faced purchasebrackets of[thus] childin carethe fromabove abill childis carenot providerenacted forand theis childrenintended ofto thebe employer'somitted employees;from the law.

(5) "Department", the Missouri department of economic development;

EXPLANATION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is intended to be omitted from the law.

HB 2409 2 (6)purchase "Intermediary",price apaid nonprofitfor organizationan thatemployer's is,purchase orof agreeschild tocare become,from subjecta tochild thecare jurisdictionprovider of this state for the purposeschildren of the administrationemployer's andemployees; enforcement of this section, and that distributes funds for the purposes of supporting a child care provider;

(5) "Department", the Missouri department of economic development;

(6) "Intermediary", a nonprofit organization that is, or agrees to become, subject to the jurisdiction of this state for the purposes of the administration and enforcement of this section, and that distributes funds for the purposes of supporting a child care provider;

Only contributions to child care providers and intermediaries that have HB 2409 3 entered into an agreement with the department may receive a tax credit pursuant to this section.

(3) The child care provider or intermediary receiving a contribution shall, within sixty days of the date it received the contribution, file a contribution verification HB 2409 3 with the department and issue a copy of the contribution verification to the taxpayer.

and HB 2409 4 (5) The contribution is not made in exchange for care of a child or children, unless the contribution is made by an employer in purchasing child care for the children of the employer's employees.

An intermediary that accepts a HB 2409 4 contribution and issues a taxpayer a contribution verification is itself permanently ineligible to claim or redeem a tax credit pursuant to this section.

6.(1)6. The tax credits authorized by this section shall not be refundable and shall not be transferred, sold, or otherwise conveyed.

(1) The tax credits authorized by this section shall not be refundable and shall not be transferred, sold, or otherwise conveyed.

HB 2409 5 8.

Upon receipt of HB 2409 5 such contribution verification, the department shall issue a tax credit certificate to the taxpayer.

and (3) The provisions of this subsection shall not be construed to limit or in any way impair the department of revenue's ability to redeem tax credits authorized on or before HB 2409 6 the date the program authorized under this section expires or a taxpayer's ability to redeem such tax credits.

HB 2409 6 (1) "Child care desert", a census tract that has a poverty rate of at least twenty percent or a median family income of less than eighty percent of the statewide average and where at least five hundred people or thirty-three percent of the population are located at least one-half mile away from a child care provider in urbanized areas or at least ten miles away in rural areas;

or (d) As an employer matching contribution, but only to the extent such employer matching contribution is restricted by the taxpayer solely for the taxpayer's employee to HB 2409 7 obtain child care services at a child care facility and is used for that purpose during the tax year;

HB 2409 7 (8) "State tax liability", any liability incurred by the taxpayer pursuant to the provisions of chapter 143 or chapter 148, exclusive of the provisions relating to the withholding of tax as provided for in sections 143.191 to 143.265 and related provisions;

or HB 2409 8 (c) The members of a limited liability company that has or elects pass-through taxation pursuant to federal income tax law.

Section 501(c)(3), and any amendments HB 2409 8 thereto, from all or part of the federal income tax shall be eligible for a refund of its tax credit issued under this section, without regard to whether it has incurred any state tax liability.

The recapture amount shall be considered a tax liability arising on the tax payment due date for the tax year in which the cessation of HB 2409 9 operation, change in ownership, or agreement to assume recapture liability occurred and shall be assessed and collected under the same provisions that apply to a tax liability under chapter 143 or chapter 148, provided that no interest shall be assessed against any amounts recaptured pursuant to this subsection.

HB 2409 9 10.

HB 2409 10 (2) "Child care desert", a census tract that has a poverty rate of at least twenty percent or a median family income of less than eighty percent of the statewide average and where at least five hundred people or thirty-three percent of the population are located at least one-half mile away from a child care provider in urbanized areas or at least ten miles away in rural areas;

HB 2409 10 (3) "Child care facility", a child care facility as defined in section 210.201 that is licensed pursuant to section 210.221, or that is unlicensed and that is contracted with the department of elementary and secondary education;

HB 2409 11 3.

The amount of any tax credit HB 2409 11 issued under this section shall not exceed two hundred thousand dollars per child care provider per tax year.

Such exempt child care provider may claim a refund of HB 2409 12 the tax credit on its tax return required to be filed under the provisions of chapter 143, exclusive of the return for the withholding of tax under sections 143.191 to 143.265.

The department of HB 2409 12 revenue shall prescribe such forms, instructions, and rules as it deems appropriate to carry out the provisions of this subsection.

(1)TheHB 2409 13 (1) The provisions of the new program authorized under this section shall sunset six years after the effective date of this section unless reauthorized by the general assembly;

and HB 2409 13 (3) The provisions of this subsection shall not be construed to limit or in any way impair the department of revenue's ability to redeem tax credits authorized on or before the date the program authorized under this section expires or a taxpayer's ability to redeem such tax credits.