| FOR IMMEDIATE RELEASE Mar. 4, 2025 | Contact: Biz Harris Executive Director 662-380-3197 biz@msearlylearning.org |
JACKSON, MISSISSIPPI – Today, the Mississippi Early Learning Alliance (MELA) launches two tools to help businesses address the growing challenge of child care for their employees. Many businesses struggle to retain staff and maintain productivity because working parents face major hurdles in finding and affording child care. These tools help employers understand how child care barriers impact their company and provide solutions—like tax credits—to ease financial strain, improve employee retention, and strengthen Mississippi’s economy.
“There’s no doubt that affordable, accessible child care is essential for Mississippi workers and their employers,” said Biz Harris, MELA’s Executive Director. “Yet many businesses don’t realize the financial impact of child care challenges, and those who do often struggle to find pragmatic solutions. These tools give businesses real data on how child care instability affects them and show how they can use an existing tax credit to benefit both their company and their employees.”
One of these tools, the Economic Impact Calculator for Businesses, originally created by the Louisiana Policy Institute for Children and modified by MELA for Mississippi businesses, is free and available to all Mississippi businesses. Employers simply enter their total number of employees, the number with children under six, and their total payroll. The calculator then estimates the annual financial losses linked to child care issues, including lost wages from absences, reduced productivity, and turnover costs.
“The Economic Impact Calculator for Businesses helps companies see the direct financial impact of child care challenges on their bottom line,” Harris said. “We hope this data encourages businesses to engage with policymakers on the real costs of child care instability and the need for solutions.”
After using the calculator, businesses may wish to explore solutions to address child care-related losses. One key option is the Mississippi Business Child Care Tax Credit, passed in 2023. This state incentive offers tax credits to businesses that support employees’ child care costs. While some companies know they can receive tax credits for operating an onsite child care center, few realize they can also offer employees a child care stipend and recoup some of those funds through the credit.
To increase awareness and simplify the process, MELA developed the Mississippi Business Child Care Tax Credit and Employee Stipend Resource Guide with feedback from the Mississippi Economic Council and the Mississippi Early Childhood Investment Council. The guide explains the tax credit, outlines how businesses can use it, and includes documentation and reporting examples for easy implementation.
“Our members have spoken overwhelmingly that childcare is a critical issue for their employees,” said Scott Waller, President & CEO of the Mississippi Economic Council – the State Chamber of Commerce. “Based on recent survey data from MEC’s Workfuture Tour, less than 3% of businesses utilize any type of assistance for their employees, including the Mississippi Child Care Business Tax Credit legislation passed in 2023. This resource guide will greatly help HR departments and CFOs for companies that want to take advantage of this opportunity to offset the high cost of childcare for their employees.”
By using this tax credit to help employees afford child care, businesses can reduce absenteeism, lower turnover, and improve workplace productivity—all while providing much-needed relief to working parents.
To access the full Economic Impact Calculator for Businesses and the Mississippi Child Care Business Tax Credit and Employee Stipend Resource Guide, visit this page of MELA’s website.
NOTE: For a demonstration of how to use the Economic Impact Calculator for Businesses or for questions about the Mississippi Child Care Business Tax Credit and Employee Stipend Resource Guide, contact Biz Harris, biz@msearlylearning.org
ABOUT Mississippi Early Learning Alliance: MELA exists to build, strengthen, and support coalitions to advocate for systems change to improve early learning and child development outcomes in our state. We champion shared policies, promote innovative and evidence-based practices, and support the collaborative design of solutions and collective action. We also elevate the voices and experiences of individuals who work in the field of early care and education and parents of Mississippi children most impacted by racial and economic inequality. For more information, visit www.msearlylearning.org and follow @MSEarlyLearning on Facebook, and @MSEarlyLearingAlliance on Instagram.