ATLANTA — With strong support in the Georgia legislature, a plan to expand tax credits for parents of young children is moving forward.
A revised version of House Bill 136 passed the state Senate, putting the plan to give Georgia parents with children younger than six years old a $250 tax credit even closer to becoming law.
Under HB 136, which passed the Senate unanimously on Friday, parents would get $250 for each child under six, beginning tax years on or after Jan. 1, 2026. The proposal also gives parents $600 for child care and dependent care costs.
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However, only one parent can receive the tax credit, according to the bill.
Additionally, child care payments for employees can be made by businesses with a minimum of $1,000 per year that they receive benefits from the company, and can be made directly to the child care facility used by the employee for their children.
If these payment are made by a business as a benefit of employment, it must be as an addition, not instead of other compensation or benefits.
Businesses that do this will be able to receive credits against their imposed taxes equal to $500 per child made per taxable year or $1,000 per child if the company is making those payments for the first time, beginning Jan. 1, 2026.
However, statewide, only $20 million in tax credits will be allowed to be paid out.
Now that it’s passed the Senate, with revision, the bill heads back to the Georgia House of Representatives for approval.
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