Bill would give property-tax-style refund to nonprofit child-care centers that rent space

Representative [Chair] Joaquin (author) told the House Taxes Committee that House File 805 would provide a property-tax-style refund for nonprofit child-care centers that rent their facilities, modeled on the property tax exemption nonprofit centers that own buildings already receive. The refund would be structured similarly to a renter's credit: a certificate from the building owner documenting gross rent paid would be submitted with proof of the center's nonprofit status to the Department of Revenue, and centers would receive a refund equal to about 10 percent of gross rent paid.

Kylie Cooper, executive director of RISE Early Learning Center, testified in support and described the practical effect on centers that rent. "This bill really reduces the overhead costs for nonprofit child care providers and evens out an existing inequity that is really just a product of whether you rent or own," Cooper said, explaining that high rent is a major barrier to providing affordable slots and livable wages for staff.

Members asked how the refund would be targeted and whether the benefit would reach families. Chair Joaquin and supporters said the measure was designed to help nonprofit providers that serve families with demonstrated needs; the author noted other proposals addressing home-based child care. Representative Hansen praised the bill's linkage to existing early-childhood compensation and scholarship programs and said the bill aligns with past taskforce recommendations.

Representative Joaquin moved to lay House File 805 over for possible inclusion in the omnibus tax bill; the motion was renewed and carried as laid over. Supporters said the provision is one step among several needed to address the state's childcare slot shortage and affordability challenges.

Speakers in this article are drawn from the committee hearing and public testimony on House File 805.