AUGUSTA - Rep. Mo Terry, D-Gorham, introduced bipartisan legislation Thursday before the Legislature's Taxation Committee that would establish a child care tax credit for Maine businesses, providing more opportunities for parents to re-enter or join the workforce after being hindered by lack of available child care.
LD 1891 would establish a pass-through entity tax (PTET) that would pay for the new child care credit, leveraging private sector dollars to support Maine families and bolster workforce participation.
"Maine's current child care system does not meet the needs of our state's children and families," said Terry. "When families do not have the child care they need, parents' ability to participate in the workforce is impacted, resulting in costs to parents, their employers and, ultimately, taxpayers."
The credit could be used in a number of ways for employers to offer child care services to their employees. It could help cover the costs associated with acquiring or constructing a child care facility, operating costs for such a facility or to offset costs related to utilizing an existing licensed child care program.
"By supporting access to child care, this bill presents a unique, revenue neutral opportunity to empower more Mainers who want to enter the workforce," said Terry. "We would be supporting our businesses who are struggling to retain workers while capitalizing on the immense interest and energy for economic development in the state."
Those testifying in support of the measure included the National Federation of Independent Business, EducateMaine and ReadyNation, a national nonprofit organization of more than 2,000 business leaders dedicated to ensuring that all Maine children have equal opportunity for healthy development.
The Legislature's Taxation Committee will hold a work session on the bill in the coming weeks.
Terry, who represents part of Gorham, is serving her fourth term in the Maine House and serves as the House Majority Leader. She is a chef and small business owner with more than 25 years of experience in the food service industry.
Contact:
Brian Lee [Terry], c. 305-965-2744