Rep. Joshua Penner introduces legislation prioritizing working families through child care incentives

Rep. Joshua Penner, R-Orting, has introduced his first bill in the Washington State House of Representatives. House Bill 1564 is a bold initiative to address Washington’s growing child care crisis.

With the state ranking as the seventh least affordable for infant care and median child care costs surpassing $20,000 annually—more than tuition at many universities—families face insurmountable financial burdens. Nearly 40% of parents have reported quitting their jobs or being fired due to child care challenges, costing families $2.9 billion annually in lost income. Penner’s bill aims to ease these challenges by encouraging a solution that makes child care more affordable and accessible for working families while supporting businesses and strengthening the economy.

“This legislation is a significant step forward in tackling the affordability and accessibility challenges that working families face daily,” said Penner. “Employers who invest in child care solutions for their workers deserve our support, and this bill provides a clear pathway for businesses to be part of the solution.”

House Bill 1564 establishes a 100% tax credit for businesses that provide child care assistance to employees, covering expenses such as direct contributions to child care costs and in-house child care facilities. Starting Jan. 1, 2026, the program allows businesses to reduce their business and occupation or public utilities taxes by the amount they spend on providing child care for employees. They can apply the remaining amount to the following year if they don’t use the full tax benefit in one year. Administered by the Department of Revenue, the program is set to run through Jan. 1, 2037, with a potential extension based on its success in increasing employer-provided child care support.

“Child care isn’t just a family issue: it’s a workforce and economic development issue. By incentivizing employers to step up, we can ease the financial burdens on parents, strengthen local economies, and improve the quality of life for families across Washington,” continued Penner. “This bill is a meaningful step toward creating a more family-friendly state where parents can thrive at work, children have access to safe and supportive care, and communities are stronger. I’m proud to make this my first legislative priority and look forward to the bipartisan work to see it through.”

HB 1564 has been sent to the House Finance Committee for further consideration.

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Washington State House Republican Communications
houserepublicans.wa.gov