The West Virginia House of Delegates has advanced a bill that will allow for personal income tax credits for child care, which is a big legislative step. Following a resounding 88-3 vote in a special session on Monday, the legislation now moves on to the Senate for additional review.
Families could benefit from a personal income tax credit equivalent to half of the federal child care tax credit under the proposed law. For instance, a family that is eligible for a federal tax credit of $1,000 would additionally receive a $500 credit on their state income taxes.
The law would go into effect retrospectively at the start of 2024 if it were adopted.
On September 30, the first day of the extraordinary session, House Speaker Roger Hanshaw, a Republican from Clay, and Minority Leader Sean Hornbuckle, a Democrat from Campbell, submitted the bill.
For child care providers around the stateāmany of whom are struggling financiallyāthis program is timely. Approximately 700 child care places have reportedly been lost this year as a result of closures brought on by erratic funding and a personnel deficit brought on by low pay.
As of right now, the state has been paying centers through an enrollment-based subsidy program that is mandated by the federal government. It is anticipated that these short-term funding would run out by the end of the year, underscoring the pressing need for long-term fixes.
Governor Jim Justice also just added a plan for a $5 million investment to his special session agenda, with the goal of increasing child care services in West Virginia.
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Lawmakers handle issues and fight for families
Del. Voting in favor of the bill, Democratic legislator Kayla Young of Kanawha expressed confidence about its possible effects.
Young emphasized how crucial it is to increase accessibility and lower expenses in order to guarantee that families may obtain high-quality care while parents are at work.
She saw this law as a positive move, even though she knew it wouldn’t completely solve the problem of center closures on its own.
“It’s going to take a multi-pronged approach, but we’re moving forward,” Young stated. “There’s still much more work to be done, and we need to support businesses, families, and employers.”
Still, not every lawmaker supports the bill. Three delegates voted against it, with one of them being Del. Elias Coop-Gonzalez, R-Randolph, who raised concerns about possible injustices.
Coop-Gonzalez suggested looking into other options that would offer more extensive advantages, like increasing the standard deduction to giving parents more freedom in how they handle child care costs.
The continued talks highlight the urgent need for comprehensive measures to address the intricate problems affecting child care in West Virginia, even as the bill makes its way to the Senate.
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