Bills Reward Firms For On-Site Child Care Plans Would Give Tax Credits To Businesses Offering Day Care

In a year when everyone seems to be talking about throwing welfare moms off the dole, some Senate Democrats are asking: What next?

How can parents of young children afford to work if it means paying $600 a month for child care?

Sen. Jeanne Kohl, D-Seattle, has an answer: Offer tax credits to businesses that provide child care for workers.

“If we really want to help people get off welfare and require that people get off welfare, then we have to make sure they can get affordable child care,” Kohl said.

Her proposal was considered at a hearing Tuesday before the Senate Human Services and Corrections Committee. The committee also heard a similar proposal by Sen. Mike Heavey, D-Seattle.

Kohl’s bill would grant tax breaks to businesses that establish on-site child care programs or give employees vouchers to use at licensed day care facilities.

It’s not just the poorest who suffer from high child-care costs, Kohl said.

“I believe this is hitting the middle class very, very hard,” she said.

But the chairwoman of the House Human Services Committee said the tax break proposals probably won’t pass this year.

“I support some form of tax break in providing child care,” said Rep. Suzette Cooke, R-Kent. But she said there are too many questions about the fiscal impact of Kohl’s bill.

Cooke said she would prefer letting a task force study the issue after the current legislative session is over.

Some lawmakers say they worry about favoring families where both parents work over those in which a parent stays home.

“I think usually it’s a more healthy situation - if they are able - for one parent to stay home,” said Sen. Gary Strannigan, R-Everett, at Tuesday’s hearing.

Specifically, Kohl’s bill would grant tax credits of 25 percent against the amount spent by businesses that set up on-site child care. It also would grant tax credits of 50 percent against the amount spent by businesses that give vouchers to employees to use for licensed day care.

Heavey’s alternative would grant tax credits of $3 per square foot of space devoted by a business to child care facilities. It would offer a 25 percent credit for money spent on vouchers for off-site care.