(The Center Square) – A bill creating a new $250 tax credit for Georgia parents with children under the age of 7 moves to the House of Representatives after receiving Senate approval.
The state income tax credit for qualified child and dependent care expenses would increase from 30% to 40% if the bill passes the House and is signed by the governor.
Employers that sponsor or offer child care to employees would have their tax credit increase from 75% of the operation’s cost to 90%.
The Senate Study Committee on Access to Affordable Childcare, chaired by Sen. Brian Strickland, R-McDonough, held hearings on the tax credits in 2024.
Strickland told the Senate that parents spend more than $11,000 a year on child care, and some spend more than one-third of their income.
“There’s right at approximately 732,000 children in our state under the age of 6,” Strickland said. “Sixty-eight percent of the children are under the care of a single parent that works or two working parents.”
Lt. Gov. Burt Jones said child care costs are a priority during this session.
“The passage of Senate Bill 89 is a great first step in our efforts to help families who are struggling to afford the cost of child care, while also encouraging more businesses to offer childcare as an employee benefit,” Jones said.
