144th House District Capitol Report

We had another busy week in the Capitol. As always, it is so nice to have visitors from the district stop by and visit. The Missouri Forest Products Association was at the Capitol. Phil and Christy Roberts and Mike McNail were able to attend as well as a few others from the surrounding communities.

Also, advocating for legislation concerning foster care, Kendell Seal, the son of Jim and Tammy Seal of Piedmont, stopped by my office. I always enjoy seeing young adults from our district who have grown up and are doing great things.

• House committee debates tax credit package to boost child care: The Missouri House is moving quickly on a tax credit package aimed at addressing the state's child care crisis. The Missouri House Workforce and Infrastructure Development Committee discussed a plan that would provide tax credits to child care providers, donors to daycare centers and businesses which help cover the child care costs of their employees as a solution to the ongoing crisis, while also serving as an economic development tool for the state.

Missouri legislators have been grappling with the issue of the state's growing workforce crisis, and one piece to the puzzle is fixing the lack of access to child care. Testifying before the committee, the bill sponsor emphasized the severity of the issue, stating that there's 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. A U.S. Chamber report estimates that Missouri loses more than $1.3 billion annually as a result of child care shortages.

House Bill 1488 asks state legislature to approve a tax credit package that is intended to boost access to child care options statewide. That package is broken out into three parts:

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

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

-- The credit must be between $100 and $200,000 per tax year.

-- Eligible donations must directly support child care for children aged 12 or younger, be distributed within two years if made through an intermediary, and not involve a direct financial interest for the taxpayer.

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

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

-- Taxpayers with two or more employees can claim a 30% tax credit for qualified child care expenditures, with a maximum credit of $200,000 per taxpayer per year.

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

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

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

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

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

-- Maximum tax credit is $200,000 per child care provider per tax 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 to child care providers 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.

• MOBUCK$ bill primed to move forward: The Missouri House Committee on Financial Institutions is reviewing legislation advocating for increased funding for the highly valuable MOBUCK$ program, designed to assist local lenders in reducing interest rates for eligible buyers in the state. Through MOBUCK$, lenders can lower interest rates by 2 to 3%, with over 140 lenders in the state participating, enabling qualified borrowers to enjoy these savings.

House Bill 1803 proposes increasing the program's annual budget from the current $800 million to $1.2 billion, responding to the overwhelming popularity of the program. The program, which reopened on Jan. 2 after a pause in May of the previous year, garnered significant attention. State Treasurer Vivek Malek reported receiving 142 applications totaling more than $119 million within six hours of reopening.

Borrowers, initially facing a 10% interest rate, could see their loan rates reduced to as much as 6.5 or 7% by utilizing this program. The MOBUCK$ is a proven program that helps farmers and small businesses save on their bottom lines by providing a break on loan interest.

• Regulatory Sandbox Act looks to encourage innovation: Missouri lawmakers are currently deliberating on an initiative aimed at alleviating regulatory burdens in an effort to boost innovation and entrepreneurship. The proposed legislation, known as the Regulatory Sandbox Act, was discussed before the House Economic Development Committee this past week. HB 1960 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.

During the committee hearing, the bill sponsor emphasized the necessity of providing an alternative mechanism for innovators and entrepreneurs who struggle with regulatory obstacles hindering the introduction of new services, products and technologies to the market. Acknowledging the substantial regulatory burden in Missouri, the bill sponsor pointed out the existence of over 113,000 regulations imposed by the state, in addition to federal and municipal regulations, by which these entrepreneurs and businesses must contend and abide.

The passage of this legislation is 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.

• Concealed carry one of the first issues up for debate in House General Laws Committee: The Missouri House General Laws Committee considered two gun bills last week that would modify rules related to concealed carry in the Show-Me State.

HB 2291 would exempt state and local sales taxes on firearms and ammunition sold in Missouri, while HB 1708 proposes a series of significant amendments to current firearms legislation, including permitting concealed firearms on public transportation, reducing the age for concealed carry permits, and repealing restrictions on carrying firearms in places of worship. The Missouri House has given approval to such proposals in previous sessions, though the legislation has failed to advance in the Senate.

While the legislation looks to protect Second Amendment rights, it is also about crime prevention in our communities. This is not a partisan issue. Crime and violence don't discriminate.

• Technology continues to grow, spurring the state's economy: Missouri's technology sector has experienced robust growth, surpassing the national average in job expansion over the past decade. The state's manufacturing segment, notably in tech manufacturing, ranks among the top 10 in job growth, with positive projections for the future.

The Technology2030 report from the Missouri Chamber Foundation underscores the tech sector's increasing impact on the state's economy, emphasizing its evolution from a historical manufacturing foundation.

Key statistics from the 2022 report highlight the significance of Missouri's tech industry, employing nearly 159,000 individuals and generating almost $19 billion in income. With 16,710 tech establishments contributing to 10% of the state's total earnings, an additional 205,720 tech occupation jobs have been created in non-tech companies. The report also reveals growth trends, such as a 2.5% increase in tech industry jobs from 2021 to 2022 and substantial growth over the last five years. While celebrating achievements, the report identifies areas for improvement, including broadband access and reversing the decline in STEM program completions. The Missouri Chamber of Commerce and Industry emphasizes ongoing analysis and a supportive business climate to sustain tech industry growth.

• 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.