ATLANTA — In a significant move, Georgia’s state senators have expressed their support for a child tax credit initiative championed by Republican Lt. Gov. Burt Jones. On Wednesday, the Senate approved Senate Bill 89 with a unanimous vote of 49-0. This legislation proposes a state income tax credit that could provide up to $250 for each child under the age of 7. Additionally, it aims to expand an existing child care tax credit by offering parents up to $300 more per child and to increase employer benefits for those who invest in onsite child care facilities.
The implementation of these three initiatives is projected to cost the state around $180 million in lost tax revenue annually, with the newly proposed credit for young children being the most costly, amounting to more than $160 million per year. As the matter moves to the House, lawmakers will need to weigh their support for these changes, particularly in light of the recent slowdown in state revenue growth.
Senator Brian Strickland, a Republican from McDonough and sponsor of the bill, emphasized the importance of evaluating the return on investment when considering the expense of a tax credit. “Providing families the ability to work and advance their careers, especially with quality childcare for young kids, is undoubtedly a valuable long-term investment for our state and its taxpayers. It’s also a morally sound decision,” he explained.
Burt Jones, who is contemplating a run for governor in 2026, has been advocating for child tax benefits while simultaneously aiming to appeal to a conservative voter base aligned with Trump in potential Republican primary elections. Furthermore, his efforts to support child welfare initiatives may be an attempt to create a strong platform for a general election in a state where political competition is high.
On the other hand, Democrats have proposed even more substantial tax relief measures, which include a $200 child tax credit applicable to all children under the age of 17, alongside a child care tax credit that would match a parent’s actual expenditures for day care, preschool, after-school, or summer programs.
Tax credits are designed to reduce an individual’s tax liability, potentially allowing for significant financial relief compared to traditional tax deductions. In Georgia, these credits can only offset the amount of state income tax owed, meaning individuals with limited or no tax liability cannot receive a refund for unused credit amounts.
Currently, there exists a federal child tax credit that offers up to $2,000 for each child under 17, but Georgia has yet to establish its own version. The state’s current child care tax credit allows up to 30% of the corresponding federal credit for child care costs, which stands at a federal cap of $3,000 per child. Consequently, Georgia’s maximum limit is $900 per child; however, the proposed legislation aims to increase this amount to $1,200, reflecting 40% of the federal threshold. This transition would lead to an additional estimated annual cost of $14 million beyond the existing $42 million in revenue the state already foregoes.
Moreover, the proposal includes an enhancement of tax incentives for employers who invest in developing or equipping child care centers. Presently, employers receive a 50% tax credit for their expenditures related to child care, but the new plan seeks to elevate that credit to 75%, increasing their financial benefits for contributing to child care solutions.
