Georgia Senate unanimously backs pricey push for $250 child tax credit

ATLANTA (AP) — Georgia’s state senators are backing an expensive push by Republican Lt. Gov. Burt Jones to create a child tax credit.

The Senate voted 49-0 on Wednesday to pass Senate Bill 89. The measure would create a state income tax credit of up to $250 for every child younger than age 7, expand an existing tax credit for child care to give parents up to $300 more per child, and let employers claim a larger credit for investing in an on-site child care center.

All three provisions would cost the state $180 million or more in foregone tax revenue each year, estimates show. The new credit for children under 7 is by far the most expensive, at more than $160 million a year. House members must now decide whether they support the change even as state revenue growth has slowed.

“When you look at the expense of a tax credit, you’ve got to look at the return on investment, first off” said Sen. Brian Strickland, a McDonough Republican who sponsored the measure. “And we know that letting more families have the flexibility to go to work and build careers, having good childcare for young children obviously is a great investment long-term for our state and our taxpayers. It’s also just the right thing to do on top of that.”

Jones has pushed child tax breaks as he considers a 2026 run for governor. Jones often aims at a Trump-aligned conservative electorate in a potential Republican primary. But he’s also made moves to protect or aid children, to build a record for a general election in politically competitive Georgia.

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Democrats have proposed even more generous breaks, including a $200 child tax credit for all children under 17 and a child care tax credit worth up to what a parent spends on day care, preschool, after-school care or summer programs.

Tax credits allow someone to reduce their tax bill by up to the full value of the credit, and are more valuable than a tax deduction. In Georgia, tax credits can only be used up to the limit of someone’s tax bill. A taxpayer who owes little or no state income tax can’t get money back.

There’s already a federal child tax credit of up to $2,000 per child for those under 17, but Georgia hasn’t had its own credit.

Now, Georgia’s existing child care tax credit lets taxpayers get back up to 30% of the separate federal income tax credit for child care expenses. The federal ceiling is $3,000 per child, which means Georgia’s ceiling is $900 per child. The plan would increase that to $1,200, or 40% of the federal ceiling. That would cost an estimated $14 million more yearly over the $42 million in revenue the state already forgoes, estimates show.

The plan would also increase tax benefits to employers when they invest in building or equipping a child care center. Right now an employer can take a credit of 50% of the spending off corporate income tax, while the plan would increase that credit to 75%.