On February 4, Legislative Director Kevin Kinnally testified before the Ways and Means Committee to support HB 389 – Property Tax – Day Care Centers, Child Care Homes, and Child Care Centers.
This bill enhances local flexibility to incentivize and support childcare providers through targeted property tax incentives.
Childcare availability remains a significant challenge, impacting workforce participation and economic mobility. HB 389 expands an existing local-option property tax credit counties may offer for childcare facilities. Current law allows counties to provide a real property tax credit of up to $3,000 annually for qualifying childcare centers. This bill broadens eligibility to include large family childcare homes and increases the maximum allowable credit to $10,000 per property.
Additionally, the bill extends an existing personal property tax exemption to include personal property used by large family childcare homes, ensuring consistency with the tax treatment of traditional childcare centers. These updates provide counties with a practical, locally driven tool to encourage childcare investment and address growing workforce needs, helping support economic stability and community well-being.
This legislation provides counties with a valuable tool to encourage childcare investment while preserving local autonomy. It also allows local governments to tailor tax incentives to meet community needs by authorizing counties to determine eligibility, set credit amounts, and adopt regulations that support childcare providers while balancing fiscal considerations.
HB 389’s cross-file, SB 516, was heard on February 12 in the Senate Budget and Taxation Committee. Kevin Kinnally testified in support of this bill.
SB 516 was heard in the opposite chamber, the Ways and Means Committee, on March 25. MACo submitted written testimony in support of this bill.
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