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Solving North Dakota's child-care crisis is taking another turn, with adoption of a new tax credit.

The incentive is geared for employers who make contributions toward their employee's child-care costs.

Governor Kelly Armstrong has signed a bill that allows employers to claim a tax credit of 50 percent, for child-care stipends they might offer as part of a benefits package.

Bill supporters say it might convince more businesses to meet the needs of staff members with young kids.

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Bill Bauman, CEO of the Missouri Valley Family YMCA in Bismarck, said he hopes it'll be effective in removing stress on the child-care system by keeping parents in the workforce.

"It's so vital to our economy," said Bauman, "our community, our workforce and our families."

The YMCAs are collectively the largest provider of child-care services in North Dakota, and Bauman said they've seen progress in closing gaps based on 2023 investments from the state.

Other organizations such as the Chamber of Commerce agree that previous steps have helped.

But officials note some solutions have limitations, pointing to age and income eligibility levels under the Working Parents Child Care Relief Program.

Bauman credited policymakers for continuing to monitor how these efforts are playing out, and whether they need to try something new.

He suggested it's going to take additional time to measure the effectiveness of new programs and incentives.

"Some are highly utilized and others maybe not as utilized," said Bauman, "so you have to be able to adjust."

According to a 2024 North Dakota business survey from the Chamber of Commerce, 69 percent of respondents indicated that child care was an issue for their organization.

A similar percentage indicated support for this type of incentive to help recruit and retain workers.