HOUSE BILL REPORT
HB 1922
As Reported By House Committee On:
Children & Family Services
Title: An act relating to tax credits for employer‑provided child care benefits.
Brief Description: Allowing tax credits for employer‑provided child care.
Sponsors: Representatives Eickmeyer, Tokuda, D. Sommers, Dickerson, Rockefeller, Stensen, Wolfe, Lovick, Conway, Ogden, Lantz, McIntire, Santos, Kenney, Kessler, Edmonds and Morris.
Brief History:
Committee Activity:
Children & Family Services: 2/22/99, 2/25/99 [DP].
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Brief Summary of Bill
$Small businesses operating in a distressed area are eligible to receive a tax credit for child care assistance they provide to their employees.
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HOUSE COMMITTEE ON CHILDREN & FAMILY SERVICES
Majority Report: Do pass. Signed by 10 members: Representatives D. Sommers, Republican Co-Chair; Tokuda, Democratic Co-Chair; Boldt, Republican Vice Chair; Kagi, Democratic Vice Chair; Campbell; Carrell; Dickerson; Eickmeyer; Kastama and Pflug.
Staff: David Knutson (786-7146).
Background:
High quality child care services are not readily available for working parents. Employers who attempt to support high quality child care for their employees do not currently receive a tax credit for this purpose.
Summary of Bill:
Small businesses operating in distressed areas are eligible to receive a tax credit equal to 100 percent of the state-approved, employer provided child care benefit to the employee. The total value of the credit for all small businesses cannot exceed $2 million per biennium. The Department of Social and Health Services must provide prior approval of the proposed child care credit.
Appropriation: None.
Fiscal Note: Not requested.
Effective Date: Ninety days after adjournment of session in which bill is passed.
Testimony For: Small business need encouragement to provide child care assistance for their employees.
Testimony Against: None.
Testified: (In support) Jean Sloan, Child Care Action Council; and Lonnie Johns-Brown, Washington Association for the Education of Young Children;