You know, they say daycare workers have the best eyesight. 👀 No, it’s not because they eat a ton of carrots. It’s because so much of their day is spent on…supervision. 🦸
In Ohio, many working families are struggling to find and afford quality childcare. A new bill hopes to change that through a special business tax credit. 💸
Here’s Five Fast Facts on the proposed child care tax credit for Ohio businesses:
- 🏭 Down to Business - Similar to the federal tax credit already in place, a new bill creating a business tax credit for child care benefits just dropped in the Ohio House. The difference? The state-sponsored credit would give employers an incentive to offer benefits to employees and offer additional funding.
- 🧒 Kids Incorporated - The tax credit would be available to employers who provide certain child care benefits to employees. The credit can be used to offset other taxes, like income or commercial activity. Employers can also use the credit for costs associated with starting or running an employer-owned child care facility, contracts with an existing child care facility, or paying employees for their own child care.
- 🧢 No Cap - According to the bill, the new tax credit is capped at $500,000 a year. However, any unused funds can be carried over through the following five years. This state-sponsored credit is in addition to the federal credit that covers 25% of total child care services or benefits with a cap of $150,000 annually.
- 🕳️ Mind the Gap - According to the OH Department of Children and Youth, roughly 40,000 kiddos statewide aren’t eligible for the state’s public assistance to pay for services. The goal of the bill is to close this gap and give more families a helping hand.
- 📲 Sick Day - When parents can’t afford child care services for their families, many are forced to call out of work…or stay out of the workforce altogether. Data from the U.S. Chamber of Commerce shows that the Ohio economy loses over $5 billion each year to the child care crisis.
🔥Bottom line: Childcare shortages and affordability issues aren’t just an Ohio problem. They’re hitting neighboring states hard, too. If this bill makes it all the way through, employers who boost their employee’s child care expenses get an extra boost for themselves. And who doesn’t love a solid win-win?
Are there good child care options where you live?
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