Bill > HB136

This bill makes several significant changes to Georgia's tax code related to child and dependent care expenses, tax credits for families with young children, and contributions to foster child support organizations. The bill increases the state tax credit for child and dependent care expenses to 50% of the federal credit, creates a new $250 tax credit for each qualifying child under six years old, and introduces a tax credit for employers who make child care payments for employees. Additionally, the bill expands the tax credit for contributions to foster child support organizations, now allowing credits for contributions that support both aging foster children and justice-involved youth. The bill increases the annual aggregate tax credit limit for these contributions from $20 million to $30 million, with a new provision that no more than $10 million can be claimed by business enterprises. The legislation also adds more detailed reporting requirements for qualified organizations and specifies how funds must be used, ensuring that at least 80% of contributions go directly to qualified expenditures. The bill will become effective on July 1, 2025, with most provisions applicable to taxable years beginning on or after January 1, 2026, and is designed to provide financial support to families with young children and organizations supporting foster and at-risk youth.

Budget and Finance

https://www.legis.ga.gov/legislation/69535