Understanding the New Child and Dependent Care Tax Credit in West Virginia

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Written By Blue & Gold NLR Team

 

 

On October 7, 2024, West Virginia lawmakers gathered in the House of Delegates Chamber to address the state’s pressing child care crisis, which has left over 20,000 child care spots unfilled as hundreds of providers have shut down due to financial strain and uncertain state funding.

During the special session, Governor Jim Justice introduced two child care-focused bills, emphasizing the need for affordability. The legislature approved a state-level Child and Dependent Care Tax Credit, which is expected to provide eligible families, who already claim the federal child care tax credit, with an average benefit of approximately $250. This comes as many families face monthly day care costs ranging from $600 to $700.

However, the House chose not to advance Justice’s second bill, which proposed a $5 million pilot program in partnership with a California-based company, Wonderschool, to open five new day care centers and connect providers with families in need. Lawmakers expressed concerns that the funding would not directly benefit West Virginia’s child care infrastructure.

Delegate Wayne Clark (R-Jefferson) criticized the decision to allocate millions to an out-of-state initiative, urging a focus on improving local child care programs. Similarly, Delegate Joey Garcia (D-Marion) highlighted that feedback from local providers indicated a need for increased subsidies rather than funding external recruitment efforts.

The House ultimately voted 47-40 to table the pilot program bill indefinitely, prompting Governor Justice to remark on the need for more substantial financial commitment to child care. He initially sought $20 million but settled for the reduced request, stating that the political atmosphere was challenging due to lobbying pressures.

The Child and Dependent Care Tax Credit, which was signed by the Senate, represents a significant milestone for working families in West Virginia, with an implementation cost of $4.2 million. Justice acknowledged it as a positive start, emphasizing the need for ongoing efforts to address child care issues.

Delegate Kayla Young (D-Kanawha), who has been a leading advocate for child care legislation, expressed hope for continued collaboration in future sessions. She noted the importance of involving providers, parents, employers, and state agencies in crafting meaningful solutions to the child care crisis.

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