This month, West Virginia announced their new legislation developments. An updated Child Tax Credit (CTC) payment is planned on being rolled out. The CTC is aimed at supporting families with children. This initiative would allow families to receive a personal income tax credit equal to 50 percent of the federals child care tax credit. This legislation is a significant step toward enhancing financial support for parents in the state.
CTC update moves to the Senate with a 88-3 vote by the Delegates
On Monday, 7th October, the new proposed bill was passed by an overwhelming majority of 88-3. The bill now moves to the Senate to be voted on before being approved officially. Should the bill be approved, the legislation will come into effect retroactively from the beginning of 2024. This means that the the 2024 year will be qualifying material to receive the benefits which come with the proposed new legislation.
The new update to the CTC means that you will also receive a personal income tax credit equal to 50 percent of what your CTC is. For example, if you are receiving $1,000 worth of CTC, you will be entitled to an additional $500 tax credit on your West Virginia state income taxes. West Virginia Governor Jim Justice has also recently proposed a 5-million-dollar investment aimed at expanding child care services in West Virginia.
Critical time for child-care providers
The additional support from the state for child care support comes with the fact that many child-care providers are struggling to support children financially. 700 child-care locations have been closed this year alone due to unstable funding and staffing shortages related to low wages. At the moment, West Virginia has been reimbursing child-care centers’ expenses through a federally mandated enrollment-based subsidy program until the end of the year.
“It’s really hard for families to access child care as it is,” says Del. Kayla Young, “it is quite expensive”. She additionally added: “there’s still much work to be done, and we need to support businesses, families, and employers”. Being able to afford child care is critical for families to thrive financially as many households cannot afford to lose out on the additional income which comes with both parents working.
The bill still comes with challenges
Despite the overwhelming support for the bill, some delegates who opposed it have raised critical points about its sustainability. Del. Elias Coop-Gonzalez who was one of the three to vote against the bill stated that he feared the bill would “favor one demographic over another”. Additionally, the bill is a supplement to addressing the larger question of how to reduce child care costs in the long run. Coop-Gonzalez suggested rather raising the standard deduction to give parents greater choice and room as to how they manage child care expenses.
While the bill won’t be directly addressing the child care centers closures, the additional funding would mean that parents have more finances to work with for alternative child care options. However, an additional income based on what you are already receiving may, as Coop-Gonzalez acknowledges, benefit some while offering limited additional help based on what your principal amount already is.
Perhaps the biggest question we need to be asking ourselves is how and why child care has gotten so expensive. Young people today are significantly more hesitant about having children due to the increased costs associated with child care along with societal expectations of how children need to be raised. To encourage families to have children, an environment needs to be created where the financial costs associated with children are not an impossibility.
Child care continues to be a concern for current and future parents alike. The acknowledgment by West Virginia to improve these conditions may encourage other states to start tackling the problem too.
