Ohio Bill Proposes New Business Tax Credit to Boost Access to Child Care
A new bill in the Ohio House aims to help working families by encouraging employers to offer child care benefits through a state tax credit.
House Bill 167, introduced by Rep. Andrea White (R-Kettering), would provide a nonrefundable business tax credit to employers that offer child care support, whether through operating their centers, contracting services, or providing employee stipends. The bill mirrors a federal credit that White says is underused and too restrictive.
Unlike the federal version, H.B. 167 would allow nonprofits to participate and support employer-paid child care stipends, currently ineligible for the federal credit. The bill proposes a $500,000 annual cap, with unused credit eligible to roll over for up to five years.
White emphasized the economic stakes, citing $5.48 billion in annual losses to Ohio’s economy due to child care shortages, according to research by the U.S. Chamber of Commerce.
The bill joins broader efforts in the legislature to address Ohio’s child care “deserts” and affordability crisis. The House’s proposed budget also includes an additional $50 million annually for the Child Care Choice Voucher Program, which serves families who earn too much to qualify for Publicly Funded Child Care.
Some lawmakers have raised concerns about long-term state involvement in subsidizing child care, signaling further budget scrutiny ahead. The Ohio Senate is expected to release its budget draft soon, with negotiations wrapping by the end of June.
