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Senate passes bill expanding child-care tax credits and employer childcare incentives
Summary
Senate Bill 89 passed the Georgia Senate to expand tax credits that offset child care costs for families and employers; sponsor framed the measure as a step to help working parents amid sharply rising child-care costs.
ATLANTA — The Georgia Senate on Feb. 19 passed Senate Bill 89, a measure that expands state tax credits aimed at reducing child-care costs for families and increasing incentives for employers who provide childcare for employees.
Sponsor Senator Strickland (40th/2nd) told the chamber the bill grew from a Senate study committee on access to affordable childcare and that it aims to ease the financial burden on working parents. "Families shouldn't have to choose between having a career and being a parent," Strickland said on the floor.
Strickland and committee members cited several statistics during debate: about 732,000 children in Georgia are under age 6; roughly 60.8% of those children have a working single parent or two working parents; infant center-based costs average more than $11,000 per year and rose about 20% from 2022 to 2023; family care costs for infants average more than $8,000 per year and rose roughly 15% in the same period. Sponsors said these increases force some parents to reduce work hours or exit the workforce entirely.
The bill does three principal things on its face: it creates a new refundable or nonrefundable tax credit for families with children under age 7 to help cover care costs; it increases a state tax credit tied to the federal child-and-dependent care tax credit to 40% of the federal credit; and it expands an employer tax credit to encourage businesses to provide childcare or partner with facilities for employees. The bill also revises eligibility rules and credit amounts for the employer credit.
Floor debate included lighthearted exchanges: Strickland introduced his young children and urged colleagues to support the measure. After committee and floor consideration, the bill passed by roll call (49-0) and will move next to the House.
Clarifying details: Sponsors emphasized the bill is not a complete solution but a substantial step to reduce costs and encourage employer-supported care. The measure draws from study committee testimony from business leaders, childcare providers and advocates.
Ending: The bill's passage sends SB89 to the House for further action; sponsors and advocates said additional policy work will be needed to address childcare supply and workforce issues fully.
