Bill > SB89

This bill makes several changes to Georgia's income tax credits related to child and dependent care. First, it increases the state tax credit for child and dependent care expenses from a previous graduated percentage to a flat 40% of the federal tax credit. Second, it introduces a new $250 child tax credit for each qualifying child under seven years old, starting in the 2025 tax year. The bill also clarifies rules for claiming this credit, including provisions for split custody situations where parents must determine which parent can claim the credit. Additionally, the bill modifies the tax credit for employers providing child care by reducing the requirement that 95% of children using the facility must be employees' children to 75%, and increases the employer tax credit from 75% to 90% of operating costs, with a higher maximum credit limit of 75% (up from 50%) of the employer's tax liability. The changes will take effect on July 1, 2025, and apply to taxable years beginning on or after January 1, 2025, with the goal of providing more financial support to families with young children and employers who provide child care services.

Budget and Finance

https://www.legis.ga.gov/legislation/69886