A bill that would expand tax credits for parents of young children is a little closer to reality. Last Friday, the Senate passed a revised version on House Bill 136 and are now sending the legislation back to the House for an agree. The Senate passed the amended version by unanimous bipartisan vote.
HB 136, by Rep. Mark Newton, R-Augusta, provides parents with children younger than six years old a $250 tax credit beginning tax years on or after Jan. 1, 2026. The bill also would expand an existing tax credit for child and dependent care. As originally passed by the House, the bill would have given parents an extra $300 to pay for such expenses. The revised proposal would give them an extra $600.
Finally, the bill would give businesses a $1,000 tax credit in the first year and $500 in subsequent years for any employee to use for childcare. Employees that spend at least $1,000 a year on childcare would be eligible.
“I want to thank members of the Senate for their unanimous, bipartisan support for this priority,” said Lt. Governor Burt Jones, who earlier in the year identified this as a legislative priority this year.
“The passage of this measure is a result of feedback from members of the House, stakeholders, business owners and Georgia families. The goal of this proposal is to help families with the rising cost of childcare, encourage more businesses to offer childcare, and expand Georgia’s workforce. I look forward to the House taking final action on this measure quickly.”
According to Jones, this legislation is the result of work during the off-session by the Senate Study Committee on Access to Affordable Childcare — which was appointed by the Lt. Governor.
The bill expands the current tax credit for child and dependent care expenses from a 30 percent match of the federal credit to a 50 percent match.
The bill also preserves the existing tax credit program for employer-sponsored childcare centers.
The new version of the bill is expected to be voted on by the House early this week. There are three legislative days left in the session – which ends Friday, April 4.
