North Dakota Lawmakers Pass New Tax Credit to Support Child Care for Working Families
BISMARCK, N.D. (North Dakota Monitor) — In a move aimed at aiding working families, North Dakota lawmakers recently passed Senate Bill 2282, introducing a new tax credit that subsidizes child care for businesses throughout the state. Approved by Gov. Kelly Armstrong on May 1, the law will enable employers who provide child care stipends to write off 50% of their contributions against their income taxes, with a cap of $1,000 per employee.
Andrea Pfennig, vice president of government affairs for the Greater North Dakota Chamber, hailed the legislation as a "step in the right direction." Citing a 2024 survey, she noted that 70% of chamber members identified child care as a pressing concern.
Despite this progress, some advocacy groups express disappointment over the limitations of the new tax credit. Dalton Erickson, executive director of the North Dakota Human Rights Coalition, criticized the measure for not extending support to many families, stating it only benefits businesses that can afford to offer child care stipends—an option not available to most workers.
Pfennig acknowledges that the new credit improves upon a 2023 child care program that required businesses to navigate a bureaucratically complex matching initiative and imposed strict income requirements for those seeking assistance. Under the new tax credit, businesses have greater flexibility to support their employees.
Additionally, lawmakers passed House Bill 1119, which establishes a child care services advisory committee responsible for examining child care licensing practices. This measure also calls for a program evaluation of child care services overseen by the Department of Health and Human Services.
With these legislative steps, North Dakota seeks to enhance child care support for families and foster a more collaborative environment for businesses in the state.
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