ATLANTA — Georgia’s Republican lieutenant governor is ramping up efforts to enhance child care tax credits. Lt. Gov. Burt Jones revealed on Tuesday that a supporting senator has introduced a bill aimed at establishing a state income tax credit of up to $250 for every child under 7 years old. The bill also proposes to expand the current child care tax credit, allowing parents to claim an additional $300 per child, and to provide employers with a larger tax credit for their investments in on-site child care facilities.
Jones has included these proposals as part of his agenda while contemplating a potential gubernatorial run in 2026. Since taking office in 2023, he has focused largely on appealing to a conservative voter base aligned with Trump in anticipation of a Republican primary. However, he has also made initiatives centered on protecting and supporting children, aiming to establish a record that resonates with a wider electorate in the politically crucial state of Georgia.
“We need to do more to provide Georgia’s workforce with access to affordable and high-quality child care,” Jones stated. “Child care is not just vital for childhood development but is also fundamental to Georgia’s economy. This proposed legislation is designed to assist families struggling with child care expenses while encouraging more businesses to offer child care as a benefit for employees.”
This announcement comes on the heels of proposals from Democrats offering even more substantial tax breaks. These include a $200 child tax credit for all children under the age of 17 and a comprehensive child care tax credit that would cover the full amount a parent spends on day care, preschool, after-school programs, or summer activities.
“Affordable child care is crucial for working families and a robust economy,” explained House Democratic Whip Sam Park from Lawrenceville, a long-time advocate for increased tax relief. “These tax credits alleviate financial pressure on parents, improve access to quality care for more families, and ensure that individuals can balance work with caregiving responsibilities.”
Tax credits enable individuals to lower their tax obligations by the amount of the credit, making them generally more advantageous than tax deductions. However, in Georgia, these credits can only be applied up to the total of a taxpayer’s tax bill. Therefore, anyone with minimal or no state income tax liability does not receive any cash back. Park supports a concept known as a refundable tax credit, which would allow the state to return money exceeding what an individual owes in taxes; however, a legal opinion has indicated that this would conflict with the Georgia Constitution’s prohibition against providing monetary gifts to individuals or corporations.
Currently, there is a federal child tax credit that provides up to $2,000 per child for those under 17 years old, yet Georgia lacks its own equivalent. Staff members for Jones have yet to request a formal estimate regarding the potential tax revenue loss for the state. However, based on other child tax credit proposals made by House Democratic Minority Leader Carolyn Hugley, Jones’ initiative may result in a cost between $100 million and $200 million.
At present, Georgia’s existing child care tax credit allows taxpayers to claim up to 30% of what they receive in federal income tax deductions for qualifying child care expenses. The federal cap is $3,000 per child, which translates to a maximum of $900 per child in Georgia. Jones’ proposal seeks to raise this cap to 40% of the federal ceiling, or a maximum of $1,200, potentially increasing state expenses by an estimated additional $10 million to $15 million annually, on top of the existing $40 million allocated.
Additionally, the plan would enhance tax incentives for employers investing in the construction or improvement of child care facilities, raising the credit from 50% to 75% of their expenditures against corporate taxes.
