Georgia parents would get more help with child care costs under a bill that passed the state Senate Wednesday.
Senate Bill 89 would create a new child care income-tax credit and expand some existing credits. Supporters say the legislation won’t solve an affordability crisis driven by escalating prices, but it’s a big step in the right direction.
“Working parents have to make difficult decisions about the futures of their families as they face the reality of just how expensive it now is to raise a child,” Sen. Brian Strickland, R-McDonough, told senators Wednesday.
Strickland chaired a Senate committee that studied ways to address rising child care costs last year. The committee found costs have skyrocketed in recent years. For example, the average annual price of center-based costs for infants in Georgia was $11,066 in 2023, a recent study found.
Strickland cited a survey that found 35% of low-income families spend more than a third of their income on child care — prompting many parents to conclude it makes more sense to stay at home than work.
Supporters say SB 89 can help address the problem. It would establish a new $250 income tax credit for each child under age 7.
The bill also would increase Georgia’s existing tax credit for child and dependent care expenses, which is tied to the $3,000 federal credit. SB 89 would raise the state credit to 40% of the federal credit, up from 30%. That would give parents up to $300 more for such expenses.
SB 89 also would expand an incentive for employers to offer child care, providing a tax credit for 90% of their operating expenses, up from 75%. The bill would also allow such facilities to host more children of nonemployees.
According to an analysis by Georgia State University’s Fiscal Research Center, SB 89 would cost the state an estimated $179.5 million in lost revenue in fiscal year 2026, which begins July 1. The cost would rise to $188.6 million in fiscal year 2030.
Strickland said legislators must balance the cost of the credits against the expense. That’s why the new $250 credit applies only to children under 7.
But Strickland said lawmakers could expand the credit in the future, if the state’s financial position allows it.
“We know that letting more families have the flexibility to go to work and build careers, having good child care for young children, obviously is a great investment in the long term for our state and our taxpayers,” he said after the vote. “It’s also just the right thing to do.”
The legislation is a top priority for Lt. Gov. Burt Jones, who is considering a run for governor next year. Jones hailed the bill’s passage.
“Helping families across Georgia with rising childcare costs is a priority I will not waver on this session,” Jones said in a statement late Wednesday. “The passage of Senate Bill 89 is a great first step in our efforts to help families who are struggling to afford the cost of childcare, while also encouraging more businesses to offer childcare as an employee benefit.”
SB 89 passed the Senate unanimously. It now goes to the House of Representatives for consideration.
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