A Child Care Tax Credit to Help Working Parents and Businesses

2023 Ideas Challenge Entry

With Alabamans missing work for child care purposes at a higher percentage than any other state, House Minority Leader Anthony Daniels proposed legislation to support providers through tax credits and incentives. His bill would allow each provider to receive a credit of up to $1 million with a total cap of $15 million, while each facility would be eligible for a credit of up to $25,000 with a total available credit of $5 million. The funds can be used for building an on-site facility, partnering with local facilities, or providing a stipend for employee childcare expenses.

Impact:

Under the bill, the child care tax credit program is authorized for a four-year period, helping hardworking families in a state where child care issues kept nearly 20 percent of employed Alabamans from going to work in 2021. While the legislation did not advance in 2023, it is achieving notable bipartisan support, which is extremely promising for any progressive policy in a Republican-controlled state. Daniels hopes to reintroduce the bill in the new legislative session and build a bipartisan coalition of stakeholder support through employers, business groups, and community, education, and family empowerment organizations across the state.

Paid Family and Medical Leave Policy for Maine

2023 Ideas Challenge Entry

The Guaranteed Paid Family Leave plan, sponsored by Maine Representative Kristen Cloutier, will provide up to 12 weeks of paid leave per year to all eligible employees in the private and public sector. The plan permits employees to take leave to care for any individual with whom they have a significant personal bond that is or is like a family relationship regardless of biological or legal relationship. Employees can take paid leave immediately after starting employment.

Paid family and medical leave will help Maine workers, particularly working women, meet their personal and family health care needs, while also fulfilling work responsibilities. To pay for this program while keeping track of who gets helped, the state will impose a 1% contribution rate, split evenly between the employer and employee.

Impact:

The state of Maine will keep track of how the program is affecting businesses and whether they are adapting well to implementation of the program over time. Additionally, Cloutier built in strong accountability provisions to monitor the sustainability of the fund and allows for the contribution rates to be adjusted as necessary.

Tax Deduction for Union Dues

2023 Ideas Challenge Entry

Maryland State Delegate Jazz Lewis pushed for a tax deduction to taxpayers on any union dues that they might pay. This was a deduction that was provided before the Trump administration’s passed tax reform bill stripped this reduction out of the code.

Impact:

 Success will be measured in the amount of money that this puts back into the pockets of working families. The State of Maryland will see the results in the next tax year as they start to look at the number of people that take advantage of this deduction and the amount union members deduct.

Mayor Justin Bibb: Ohio Rescue and Transformation Plan

ECONOMIC REVITALIZATION: Ohio – Cleveland Mayor Justin Bibb has unveiled a series of substantial investments aimed at revitalizing the city and expanding broadband access as part of his Rescue and Transformation Plan. Bibb announced a public-private collaboration expected to bring internet access to an estimated 29,000 homes over the next 18 months. He also recently committed $21 million of federal American Rescue Plan Act funding to a Waterfront Activation Fund, set to support nine projects along the city’s shores. In addition, he has pledged to allocate more of the city’s federal aid towards converting “thousands of acres” of brownfields into land ready for development.

Resource and Development Tax Credit

Problem

Historically, research and development incentives in Delaware have supported larger established companies. While these larger companies are vital to the state, smaller businesses and startups usually need more resources as they are starting out to remain competitive and expand their business efforts.

Solution

Rep. Short introduced legislation to reform the R&D Tax credit program in Delaware so that it will drive more of the resources to smaller start-up companies. By refocusing the credit toward smaller businesses and startups, this bill incentivizes innovation and growth in emerging industries that are critical to enhancing Delaware’s competitiveness and increasing the opportunity for job growth. If passed, the bill will improve the business climate for existing small businesses and attract new businesses to Delaware.

Enterprise Zones 2.0

Problem

Several parts of Nebraska, including Omaha, suffer from greater unemployment rates than the rest of the state but the state has limited resources allocated to economic development programs.

Solution

Senator Mello authored legislation to reauthorize Nebraska’s enterprise zone statutes to encourage investment and economic growth by giving preference for projects in economically distressed communities. Rather than creating a new economic development program, this innovative idea focuses existing resources where the need is greatest for the largest economic return. By giving these areas a leg up on programs like job training and affordable housing funds, these communities are able to better prepare citizens with the skills and support they need to become self-sufficient and contribute to the state economy.

Columbus Small Business Growth Initiative

Problem

Many economically disadvantaged neighborhoods are home to entrepreneurs who have the time and energy to help turn their neighborhoods around, but who don’t have access to funding.

Solution

Councilmember Klein convened a group of small business owners, the local Chamber of Commerce, and local non-profits to determine which investments would make the most impact to revitalize disadvantaged neighborhoods and then designed a set of grants and loans to fund streetscape and building improvements, as well as start-up loans to create new jobs.

Bringing TOD and Innovation Business Districts Together

Problem

In order to make Denver a world-class city, Mayor Michael Hancock is striving to evolve the definition of Transit Oriented Development to an idea of developing transit communities that are walkable, livable places that provide citizens with access to most of their daily needs.

Solution

As Denver continues to develop its mass transit system, Mayor Hancock is also looking to leverage the great redevelopment opportunities around station areas, increasing job and business and changing the mix of traditional uses in these development, thus transforming formerly disinvested neighborhoods. By bringing together the ideas of transit oriented development and innovation business districts, Mayor Hancock is working to create an exceptional transit system with great stations that connect to walkable communities.

Community Building Through Public Art

Problem

Salem’s downtown pedestrian mall was in need of a variety of improvements; it was tired, in need of maintenance and repair, was not pedestrian friendly, and had vacant storefronts. Without improvements, the area lacked a strong sense of community and economic activity was hindered.

Solution

Mayor Driscoll is leading the planning stages of a downtown redesign based on feedback from residents who identified public art as a means to create a great public space and enhance the economic development potential of this area. The city is starting a formal public art initiative through development of a master plan for public art, adoption of an Ordinance by Council to establish a Public Art Ordinance, and the hiring of the first Public Art Planner. This is a smart investment for everyone because art and culture add vibrancy to neighborhoods, bring people together, attract tourists to visit and stay longer, and serve as an economic development tool.

Keep Your Money Local

Problem

Cities and counties have millions in reserve and special funds but most of those dollars are invested in large funds run out of state. Local financial institutions know their community and customers better than large banks, and therefore by having access to those funds can more effectively invest in the community.

Solution

County Supervisor Coonerty proposes investing a small percentage of these reserves in local banks and credit unions to keep the money local, creating jobs and more funds for these institutions to lend to citizens to start businesses, purchase cars or improve their homes, all of which help grow the economy.

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