West Virginia House passes child care tax credit bill

CHARLESTON, W.Va. (WCHS) — A bill that would provide income tax credits for child care in West Virginia has passed the House of Representatives.

The bill, which now heads to the Senate, was approved by a vote of 88-3 during Monday’s special session. The legislation would provide a personal income tax credit equal to 50% of the individual’s allowable federal tax credit.

Under the legislation, anyone eligible for a federal child and/or dependent care tax credit under U.S. law would also receive the 50% non-refundable state tax credit.

If passed, the bill would be retroactively valid until the beginning of 2024. The bill was introduced on the first day of the special session on September 30 by House Speaker Roger Hanshaw (R-Clay) and Minority Leader Sean Hornbuckle (D-Cabell).

This comes at a difficult time for child care across the state, with providers struggling to afford less and parents unable to afford more.

It is estimated that 700 places have been eliminated nationwide this year due to the closure. This is due to insecure and unstable funding as well as staff shortages due to low wages.

The state has been reimbursing the centers with a now federally mandated enrollment-based grant program, but the temporary funds they are using now are expected to run out by the end of the year.

The governor also amended his weekend special session call to include a proposed $5 million investment to expand child care services in the state.

The West Virginia Senate was scheduled to reconvene Monday at 1 p.m.

This story will be updated as more details become available.