ATLANTA — Georgia’s Senate has united in support of a significant initiative championed by Republican Lt. Gov. Burt Jones aimed at establishing a child tax credit. On Wednesday, the Senate unanimously approved Senate Bill 89 with a 49-0 vote. This legislation proposes a state income tax credit of up to $250 for each child under the age of 7, enhances an existing tax credit for child care, permitting parents an additional $300 per child, and provides employers with a larger credit for contributions toward on-site child care facilities.
Projected costs for implementing these measures are considerable, estimated to total over $180 million annually in lost tax revenue. The new tax credit targeted at young children represents the highest expense, accounting for more than $160 million of that total. The next step rests with members of the House, who must evaluate their stance on the proposal, especially in light of a slowdown in state revenue growth.
Sen. Brian Strickland, a Republican from McDonough and the bill’s sponsor, emphasized the importance of assessing the investment yield of such tax credits. He noted that providing families with greater flexibility to work and pursue careers, particularly through the availability of quality childcare for young children, is a crucial long-term investment for both the state and its taxpayers. Strickland argued that it is not only a financially sound decision but also a morally right one.
As Jones considers a potential gubernatorial bid in 2026, he has been advocating for these child tax breaks. His focus often aligns with a conservative electorate supportive of Trump, yet he is also taking measures to advocate for children’s issues to establish a robust record for a general election campaign in an increasingly competitive Georgia political landscape.
In contrast, Democrats have suggested even more substantial tax relief, proposing a $200 tax credit for all children under 17 and a childcare tax credit that covers expenses up to the full amount parents spend on daycare, preschool, after-school care, or summer programs. Tax credits, unlike deductions, can effectively lower one’s tax liability by their full value. However, in Georgia, these credits can only be applied up to the amount owed in state income taxes, meaning that taxpayers with minimal tax obligations would not receive rebate payments.
Currently, a federal child tax credit exists, allowing up to $2,000 per child for those under 17; however, Georgia has not implemented a comparable state-level credit. Georgia’s existing childcare tax credit permits taxpayers to claim back up to 30% of the federal tax credit for childcare costs. With the federal limit set at $3,000 per child, the state’s ceiling stands at $900. The new proposal aims to elevate this cap to $1,200, which represents 40% of the federal maximum, leading to an increase in annual state losses by an estimated $14 million atop the current $42 million in forgone revenue.
Additionally, the new plan suggests enhanced tax incentives for employers who invest in the development or upgrading of child care facilities. Presently, employers can claim 50% of their expenses against corporate income tax; the proposed plan would raise that credit to 75%.
