144th House District Capitol Report

The session is well underway now with over a month under our belts and only about six weeks until spring break. Legislators are working hard to get their bills to committee. If your bill hasn't received a committee hearing by spring break, it is very difficult to have the time needed to get it through the whole process and to the governor's desk.

Constituents from the district who visited me at the capitol last week included Leon and Kathy Michel (Shannon County), Lance Mayfield and Rebecca Jackson (Iron County), Karen White (Shannon County), Lori Montgomery (Wayne County), Tim Harbison (Iron County), Don Thompson (Washington County), Megan Murray (Bollinger County) and Lydia Clark and Jyllian Torres (Iron County). All of these constituents were here to discuss issues that are important to them. I always enjoy hearing directly from the people back home.

• House approves Regulatory Sandbox Act: Members of the Missouri House have given their stamp of approval for an initiative aimed at alleviating regulatory burdens in an effort to boost innovation and entrepreneurship. HB 1960, known as the Regulatory Sandbox Act, passed last week with a vote of 131-16.

This regulatory reform legislation seeks to establish a Regulatory Relief Office within the Department of Economic Development with the task of granting businesses the opportunity to apply for a program that could exempt them from certain state laws or regulations for a two-year period.

It is important that we provide an alternative mechanism for innovators and entrepreneurs who struggle with regulatory obstacles hindering the introduction of new services, products and technologies to the market. There is substantial regulatory burden in Missouri, including the existence of over 113,000 regulations imposed by the state, in addition to federal and municipal regulations, with which these entrepreneurs and businesses must contend.

Passage of the Regulatory Sandbox Act would be a crucial step in removing entry barriers for businesses, particularly benefiting entrepreneurs and small businesses. By creating a conducive environment for new businesses to flourish, Missouri can capitalize on its existing strengths and continue to empower businesses, drive economic growth, and ensure that regulatory systems do not stifle promising ideas and ventures.

• House passes tax credit package to boost child care: The Missouri House passed a tax credit package aimed at addressing the state's child care crisis. The plan will provide tax credits to child care providers, donors to day care centers and businesses that help cover the child care costs of their employees as a solution to the ongoing workforce crisis, while also serving as an economic development tool for the state.

There is only one available child care slot for every three children under the age of 5 in Missouri. With 94% of Missouri counties labeled as child care deserts, many businesses struggle to find workers due to child care challenges. The rising cost for child care has become a major factor in the budget of many Missouri families, and often the major factor when deciding whether one parent should stay home and forgo rejoining the workforce.

Missouri has lost more than $1.3 billion annually as a result of child care shortages, including $286 million of tax revenue that we could have collected. This plan serves as an innovative solution to the problem as business, parents and government can all work together. Affordable, reliable and safe child care is an important infrastructure in our state. We will have a reliable workforce because that workforce will be able to rely on this to have quality, affordable child care available.

The bill is broken into three parts:

(1) Child Care Contribution Tax Credit Act (effective Jan. 1, 2025, to Dec. 31, 2030):

-- Taxpayers can claim a 75% tax credit against state liability for child care contributions.

-- Credit range: $100 to $200,000 per year.

-- Eligible donations must directly support child care for children age 12 or younger.

-- Non-refundable tax credits capped at $20 million annually, with a 15% increase for contributions in "childcare deserts."

(2) Employer Provided Child Care Assistance Tax Credit Act (effective Jan. 1, 2025, to Dec. 31, 2030):

-- Taxpayers with two or more employees can claim a 30% tax credit for child care expenditures.

-- Maximum credit: $200,000 per taxpayer per year.

-- Applicable to corporations, certain charitable organizations, and individuals subject to state income tax.

-- Non-refundable tax credits capped at $20 million annually, with a 15% increase for contributions in "childcare deserts."

(3) Child Care Providers Tax Credit Act (effective Jan. 1, 2025, to Dec. 31, 2030):

-- Child care providers with three or more employees can claim a tax credit for withholding tax and up to 30% of capital expenditures.

-- No credit for capital expenditures under $1,000.

-- Maximum tax credit: $200,000 per provider per year.

-- Non-refundable tax credits with excess credits carried back or forward up to five tax years.

-- Capped at $20 million annually, with a 15% increase for contributions in "childcare deserts."

The tax credits, estimated to cost up to $70 million, are justified by the potential economic growth and tax revenue they could generate. The bill would be valid for six years, allowing lawmakers to assess its impact.

• As always, please do not hesitate to reach out with any questions, concerns or suggestions you might have. As your representative, I am here to assist you however I can. I can be reached by email at Chris.Dinkins@house.mo.gov or by phone at (573) 751-2112. Please do not contact me via social media. These messages are easy to overlook and may not be responded to in a timely manner.

CHRIS DINKINS represents Missouri's 144th House District. The district includes Bollinger, Iron, Madison, Reynolds, Shannon, Washington and Wayne counties.