Lt. Governor Burt Jones this week announced another priority for this year’s legislative session, creating a child tax credit in Georgia and an expansion of childcare tax programs. With lead sponsor Sen. Brian Strickland (R-42 McDonough), the bill has some bipartisan support, including Sen. Bo Hatchett (R-50 Cornelia) – one of Governor Brian Kemp’s floor leaders and Sen. Elena Parent (D-44 Atlanta) – Minority Caucus Chair.
The bill is part of the results from a Senate Study Committee on Access to Affordable Childcare, appointed by Lt. Gov Jones. The bill would increase the income tax credit for qualified child and dependent care expenses from the current 30 percent to 40 percent – based on the current federal credit allowed. Additionally, a new Georgia Tax Credit would provide a credit of $250 per child under the age of 7. For employers who provide or sponsor child care, they would receive a credit of up to 90 percent for the cost of operation to the employer.
“We must do more to ensure that Georgia’s workers have access to affordable and quality childcare,” said Lt. Governor Burt Jones. “Childcare is critical, not only for childhood development, but also for Georgia’s economy. The proposed legislation will help families who are struggling to afford the cost of childcare and will encourage more businesses to offer childcare as an employee benefit. My priorities for this session are common sense and clear – supporting Georgia’s educators, businesses who employee them, and parents who are entering or already in the workforce. In Georgia, we will continue to take a strong stand to support our parents, teachers and students.”
The credits cannot be used against previous or future years’ tax liabilities. Numbers range a little bit depending on the source but for those who have not had a young child in Georgia lately, the cost of childcare may be surprising. The average annual cost for infant care is somewhere around $8,000 – or $700 a month. Pre-K costs are a little lower, around $6,500 or more than $500 a month. For many families, that is nearly the cost of housing, somewhere around $10,000 on average. Infant care for one child is about 15 percent of an average income in the state, add in housing and you are already up to more than 30 percent before getting to taxes, food, water, electricity.
According to the Department of Health and Human Services, affordable child care is less than 10 percent of a family’s income. Per the data from the Georgia Early Education Alliance for Ready Students (GEEARS) – an advocacy organization, less than 40 percent of families can realistically afford infant care in the state.
