A legislative template in Georgia, which would increase the amount of tax credits that residents could receive for children, and dependent care costs passed the state legislator on Friday.
If Georgia Governor Brian Kemp signs the legislative template, the current tax credit would increase 30% to 50% of the federal tax credit.
House Bill 136 would also set up a state tax credit of $ 250 for each child under six years, effective tax year 2026. If parents or legal guardians do not submit taxes together, only one parent or legal guardian can claim the tax credit per child.
According to this legislation, employers could be able to apply for a credit for the provision of payments for childcare facility for each employee per tax year. The childcare payments cannot replace existing services or compensation for employees. Employers could be able to claim $ 500 per child who benefit from childcare payments and $ 1,000 per child for the first tax year in which the employer has ever made payments or subsidies available for childcare for employees.
The tax credits for childcare for employers for employers do not exceed over 20 million US dollars, and employers must submit an application to the early care and learning department.
Lt. Governor Burt Jones applauded the passage of HB 136.
“This legislation ensures that employees in Georgia have access to affordable and high -quality childcare and at the same time encourage more companies to offer childcare,” he said in a press release on Friday. “Childcare is of crucial importance not only for the development of children, but also for the economy of Georgia. My priorities for this session have remained the same, the educators in Georgia, companies that employ them, and parents who enter the workforce or have already entered the workforce.”
