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Big news for Georgia parents: On February 19, 2025, the Georgia State Senate unanimously passed Senate Bill 89, boosting tax relief for families and businesses. With child care costs soaring—now outpacing college tuition—this bill expands the 2025 Georgia child tax credit to ease the burden. Offering a 40% child care expense credit and a new $250 per-child credit, it’s a game-changer for working moms and dads. Here’s what you need to know to save and stay ahead.
What Is Senate Bill 89, and Why Does It Matter?
Introduced by Sen. Brian Strickland (R-McDonough), Senate Bill 89 tackles Georgia’s rising child care crisis. It expands an existing tax credit for child care expenses from 30% to 40% of the federal credit and adds a $250 credit per child under seven. Businesses offering employee child care also get a boost, with tax incentives rising from 75% to 90% of operating costs.
Why now? Child care costs have spiked—center-based infant care averages $11,000 yearly (up 20% since 2022), while family care hits $8,000 (up 15%). With 68% of Georgia’s 732,000 kids under six in working-parent households, this bill—costing $180 million annually—aims to keep families in the workforce.
Long-Tail Keyword Tip: Wondering “how to claim the 2025 Georgia child tax credit”? Keep reading!
How Does the 2025 Georgia Child Tax Credit Work?
Here’s the breakdown:
- Child Care Expense Credit: Now 40% of the federal credit (up from 30%), helping offset daycare or preschool costs.
- New Per-Child Credit: $250 per child under seven, no income cap—direct relief for young families.
- Business Incentive: Employers covering child care costs get a 90% tax credit, encouraging workplace support.
Example: A family with two kids under seven spending $10,000 on child care could claim $1,600 (40% of a $4,000 federal credit) plus $500 ($250 × 2), totaling $2,100 in savings.
Explore Georgia Tax Credit FAQs
Why Georgia Families Need This Now
Sen. Strickland highlights the stakes:
- Cost Burden: 34% of lower-income families spend over a third of their income on child care.
- Workforce Impact: 36% of parents quit jobs due to child care challenges.
- Future Gains: Every $1 in early education yields $13 in societal benefits, like higher graduation rates.
“Families shouldn’t choose between a career and parenting,” Strickland said. Lt. Gov. Burt Jones, a key supporter, calls it a “priority” for 2025.
Pro Tip: Curious about “new Georgia child tax credit deadlines for 2025”? Stay tuned for filing dates!
How to Calculate Your Savings
It’s simple:
- Child Care Credit: Multiply your federal credit by 0.4.
- Per-Child Credit: Add $250 per eligible child.
Scenario: Federal credit = $3,000; two kids under seven.
- 40% of $3,000 = $1,200
- $250 × 2 = $500
- Total = $1,700
What’s Next for Senate Bill 89?
Passed unanimously by the Senate on February 19, 2025, the bill now heads to the Georgia House. If approved, credits could apply to 2025 tax filings. Updates will follow as the House acts—bookmark this page!
Your 2025 Georgia Tax Credit Checklist
- Confirm kids are under seven
- Track child care expenses
- Claim both credits on your state return
- Encourage your employer to offer child care
Get your Georgia 2024 tax refund faster
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