HB 1177 / Chamber Supports
Indiana’s childcare shortage remains a significant economic challenge. Statewide capacity meets only a portion of the demand for care, and employers consistently report childcare as a top barrier to workforce participation. The economic impact is substantial – lost productivity, higher turnover and reduced labor force engagement cost Indiana billions annually. At the same time, utilization of the existing employer childcare tax credit has been limited, in part because the credit does not reflect the real-world ways employers support childcare today.
House Bill 1177, authored by Rep. Becky Cash (R-Zionsville), addresses this gap by modernizing the credit to better align with employer needs. By allowing operating and contracted childcare expenses to qualify, the bill encourages more businesses – particularly small and mid-sized employers – to participate. This approach leverages private sector investment, expands childcare access and helps working parents remain in the labor force.
The bill will be eligible for amendment and voting by the Senate Tax and Fiscal Policy Committee this week.
