Addressing child care to build a more business-friendly NH
Businesses invest heavily in recruiting talented employees. Increasingly, employers are recognizing child care as a key component of a business-friendly New Hampshire, alongside housing, energy infrastructure and broadband.
Last year, more than 17,000 Granite Staters did not participate in the workforce because they were caring for a child, according to the NH Fiscal Policy Institute.
When families have reliable child care, businesses have employees who can work full and productive hours.
“For too many families, finding affordable, accessible child care has become a barrier to participating fully in our economy, while employers across the state struggle to attract and retain talent,” said Mike Skelton, president and CEO of the Business and Industry Association (BIA) of New Hampshire. “While there is more work to be done, these reforms demonstrate what is possible when policymakers and the business community work together to strengthen New Hampshire’s workforce and economic competitiveness.”
Employers of all sizes have ways to strengthen the workforce and the broader child care system.
Employers are already making accommodations
The “Investing in Care, Investing in Growth” toolkit, developed by the BIA, the Community Development Finance Authority (CDFA) and other partners, outlines practical strategies for employers.
Many have already responded by offering flexible schedules, remote work where possible, dependent care stipends and Employee Assistance Programs. Others help employees connect with referral services or backup care providers.
Employers say providing workplace flexibility isn’t enough.
“We have put into place workarounds, but they aren’t solving the root problems [of child care],” said Barret Cole, president of Sanborn/Head & Associates at a NH Businesses for Social Responsibility roundtable.
Partnerships could stabilize provider economics
Child care providers face familiar business pressures.
Low wages contribute to turnover, while thin operating margins make expansion difficult. Businesses can help address these challenges by investing in expansion through partnerships that qualify for business tax credits.
Through the CDFA Tax Credit Program, businesses can receive a tax credit for investing in approved community projects, including facility expansions, new centers and initiatives that strengthen child care capacity.
“Access to quality, affordable child care is critical for New Hampshire’s working families, and it sets the foundation for families to grow and prosper within our communities,” stated Katy Easterly Martey, the executive director of CDFA. “Strategic investment through CDFA’s Tax Credit Program is a proven way for New Hampshire businesses to play a direct role in strengthening local child care capacity – supporting both their employees and customers – while receiving a 75 percent state tax credit on their contribution.”
Legislative changes encourage investment
Policymakers are exploring ways to give businesses more tools to advance child care availability.
The Village on Technology Hill, a new mixed-use campus in Londonderry, was designed to support Envision Technologies’ workforce. Beyond an industrial facility, the campus includes workforce housing, recreational spaces and an on-site child care center, which will serve up to 200 children. A project this ambitious is the exception, but it illustrates how child care can anchor workforce and community development strategy.
Projects like these are investments lawmakers hope to encourage.
Beginning with the 2027 tax year, employers that help create at least 12 new child care slots, whether by expanding their own program or partnering with another provider, may qualify for a new tax credit covering up to half of eligible expenses.
“Expanding access to child care is a critical part of our efforts to ensure New Hampshire remains the best place to live, work, and raise a family,” said Gov. Kelly Ayotte in a statement. “With this new child care tax credit program, we’re encouraging our business community to be part of the solution to this pressing economic challenge in our state.”
Two additional laws signed this year make it easier to open home-based and small child care centers while creating a pooled insurance option intended to reduce operating costs for providers.
Businesses advocate for long-term solutions
Business leaders can help shape long-term solutions by participating in regional child care coalitions, engaging with policymakers and sharing how child care affects hiring, retention and economic growth. Those conversations have helped drive recent legislative changes and will continue to influence future workforce strategies.
Strengthening child care in New Hampshire is a shared effort, and every employer has a role to play. By combining workplace flexibility, partnerships with providers, strategic investments and policy engagement, businesses help strengthen the workforce they rely on.
<< Explore more solutions during a Business-Friendly New Hampshire webinar focused on childcare hosted by the NHBSR on Aug. 25, or in November during a Child Care Summit convened by the BIA and CDFA.