Childcare availability and affordability is one of the most significant factors impacting not only Granite State families, but also the state’s workforce. As businesses plan for the impending retirement of the 27% of New Hampshire’s workforce that is over the age of 55, they are looking to attract and retain prime-age workers, many of whom have or will have young children. Tackling childcare availability and affordability is crucial to ensuring New Hampshire retains its competitive economic edge by allowing businesses to attract the best and brightest young talent to our state.

As Governor Ayotte said at a recent childcare forum hosted by the BIA, NH CDFA, NH BEA, and New Futures, “we can help working families and keep growing our economy by incentivizing companies to invest in childcare, growing workforce development opportunities in childcare, and cutting red tape without compromising child safety.” We could not agree more and there are opportunities during the upcoming 2026 legislative session to provide new incentives to businesses to invest in childcare and for the legislature to continue to build on the good work that it has done over the past several sessions to cut through red tape to help improve the availability and affordability of childcare for families across the Granite State.

One bill being considered by the legislature would provide a new incentive for business investment that creates new childcare seats. That incentive comes in the form of a tax credit against the business profits tax and business enterprise tax for businesses that make an investment to improve childcare availability. Those investments can pay dividends by shortening waitlists for the business’s employees. By targeting these credits to investments in childcare, this approach allows for market forces more opportunities to find and improve the delivery of childcare options throughout the state. As the availability of childcare increases, that should put downward pressure on costs and the affordability challenges facing the sector.

Another bill seeks to remove barriers to entry and streamline the permitting process for new childcare providers while upholding child safety standards. Entrepreneurs seeking to open home based childcare centers or commercial centers in commercial districts must go through a rigorous 60-day permitting and review process with state regulators. They must comply with over a hundred pages of regulations that are keyed to ensuring the safety of the children in their care and cover everything from employee licensing to square footage of play spaces. Yet, in many places, overlapping, contrary regulations exist that prohibit the opening of new childcare centers. Streamlining permitting processes to fit under universal state regulations will help open opportunities for new childcare facilities.

These efforts alone won’t solve all the challenges facing the childcare sector. Attracting and retaining the childcare workforce is, as with the other sectors of the economy, the key issue. As we work toward lowering costs for housing by providing additional supply, creating partnerships with the community college and university systems to train the future workforce, and developing new incentives for business investment in the sector, further policy and program solutions are needed to position childcare an attractive career option.

With more than 9,000 childcare slots needed throughout the state, these opportunities for progress in 2026 are only first steps. In 2027 and future years, more efforts will be needed to ensure that the right mix of smart and effective regulations and investments exists to increase the availability and affordability of childcare in New Hampshire. By treating childcare as the workforce and economic infrastructure it truly is, New Hampshire can ensure its families and economy thrive together.

Michael Skelton is president and CEO of the Business & Industry Association of New Hampshire. Visit BIAofNH.com.