Child care tax credit now law

Gov. Sonny Perdue recently signed the Child Care Tax Credit (HB1080) at the KinderCare Learning Center on Bells Ferry Road in Marietta, Georgia. One of Governor Perdue’s legislative initiatives, this bill grants tax credits to working parents for qualified child and dependent care expenses.

“The Child Care Tax Credit will give money back to the hardworking Georgians who incur the heavy costs associated with the most fundamental and demanding job – parenting,” said Governor Sonny Perdue. “This tax credit will return up to $50 million to working parents to help cover the costs of child care.”

The Child Care Tax Credit will add another 30 percent to the federal credit in three years and will return up to $50 million to working parents to help cover the costs of child care. The state credit will start at 10 percent of the federal credit in tax year 2006, growing to 30 percent of the federal credit by tax year 2008.

Every year $60–$210 in tax relief will be granted to families, according to income level and number of children. The federal credit is nonrefundable and available to families at all income levels with employment-related expenses for children under the age of thirteen. The credit amounts to 20-35 percent of the amount claimed, depending on the family income.

HB1080 was sponsored by Representative Rich Golick. It was carried in the State Senate by Senator Casey Cagle.