Georgia’s state senators have supported a significant move to introduce a child tax credit, led by Republican Lt. Gov. Burt Jones.
The Senate passed Senate Bill 89 with a 49-0 vote. This bill proposes a state income tax credit of up to $250 for every child under the age of 7.
It also seeks to expand the existing childcare tax credit, allowing parents to get up to $300 more per child. Additionally, employers could claim a larger credit for investing in on-site child care centers.
The estimated cost of these provisions could exceed $180 million per year, with the new credit for children under 7 being the most expensive, at over $160 million annually. The proposal now awaits approval from the House.
Why This Tax Credit is Important?
Sen. Brian Strickland, who sponsored the bill, emphasized the long-term benefits of the tax credit.
He explained that giving families more financial flexibility helps parents pursue careers while ensuring young children receive quality child care.
He noted that this investment benefits both taxpayers and the state in the long run. Lt. Gov. Burt Jones, who is considering a 2026 run for governor, has been actively promoting child tax breaks.
His approach appeals to a Trump-aligned conservative base but also demonstrates his commitment to supporting children, which could strengthen his standing in the politically competitive state of Georgia.
Democrats Push for More Generous Tax Credits
Democratic lawmakers are proposing even more generous tax breaks.
Their plan includes a $200 child tax credit for all children under 17 and a childcare tax credit equal to the full amount spent on daycare, preschool, after-school care, or summer programs.
These proposals aim to provide more comprehensive support for families with children.
How Tax Credits Work in Georgia?
Tax credits allow taxpayers to reduce their tax bills by the full value of the credit, making them more valuable than tax deductions.
However, in Georgia, tax credits can only be applied up to the amount owed in state income tax. This means that taxpayers who owe little or no state income tax won’t receive any money back.
Although there is already a federal child tax credit of up to $2,000 per child under 17, Georgia currently does not offer its child tax credit.
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Changes to Georgia’s Existing Child Care Tax Credit
Georgia already provides a childcare tax credit, allowing taxpayers to claim up to 30% of the federal tax credit for childcare expenses.
The federal maximum is $3,000 per child, so Georgia’s limit is $900 per child. Senate Bill 89 proposes increasing this limit to $1,200, which is 40% of the federal maximum.
This change would cost an additional $14 million per year, on top of the $42 million the state currently loses in revenue.
Boosting Tax Benefits for Employers
The proposed plan also aims to encourage employers to invest in childcare centers. Currently, businesses can claim a credit of 50% of their spending on childcare facilities against corporate income tax.
The new plan would increase this benefit to 75%, incentivizing more companies to support child care for their employees.
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