Anne Arundel County approves tax credit for licensed daycare centers

On March 14, 2025, Maryland lawmakers introduced House Bill 1343, a legislative proposal aimed at providing property tax credits for properties designated for child and adult daycare centers. The bill seeks to address the growing need for accessible childcare and eldercare facilities by incentivizing their establishment through financial relief.

The primary provisions of House Bill 1343 include the establishment of a property tax credit for properties set aside exclusively for daycare centers. This encompasses family child care homes, licensed child care centers, and facilities catering to the elderly and adults. The annual credit is capped at $10,000 or the amount of property tax attributable to the designated area, whichever is less. Additionally, local governing bodies in Anne Arundel County are empowered to determine the specifics of the credit, including its amount and duration.

The introduction of this bill has sparked discussions among lawmakers and stakeholders regarding its potential impact on community services. Proponents argue that the financial incentive could lead to an increase in the availability of quality childcare and eldercare options, addressing significant gaps in these services. Critics, however, express concerns about the implications for local tax revenues and the prioritization of funding for other essential services.

As the bill progresses through the legislative process, experts suggest that its success could hinge on balancing the need for increased childcare and eldercare facilities with the financial realities faced by local governments. If passed, House Bill 1343 is set to take effect on June 1, 2025, and will apply to all taxable years beginning after June 30, 2025, marking a significant step in Maryland's efforts to enhance support for families and caregivers in the state.