Georgia Senate approves $250 child care tax credit

The Georgia Senate unanimously passed Senate Bill 89, which proposes a new $250 income tax credit for parents of children under 7 years old and increases the existing child care tax credit from 30% to 40% of the federal credit. The bill also aims to enhance employer incentives for providing child care, raising the operational cost credit from 75% to 90%. The legislation is expected to cost the state approximately $180 million annually in lost tax revenue, a concern for lawmakers amid slowing state revenue growth. Proponents argue that the credits will alleviate the financial burden of child care, which can consume a significant portion of family incomes, particularly for low-income households. Lt. Gov. Burt Jones has emphasized the importance of addressing child care costs and sees this bill as a vital step in supporting working families. The bill now moves to the House of Representatives for further consideration.