Georgia enacts child tax credit increase and extra $250 for children under 6

Georgia Gov. Brian Kemp signed a bill Tuesday to give Georgians a new $250 tax credit for each child under age six starting next year. The law also increases the tax credit for child and dependent care expenses from a 30% to 50% match of the federal credit.

House Bill 136 also offers an incentive for employers who provide at least $1,000 in child care support for each employee whose child is enrolled in a child care facility. Starting in 2026, employers will receive $1,000 per child supported if it is the first year they are offering employees child care payments; otherwise, employers will receive $500 per child supported.

Employers would need to apply for the tax credit with the Department of Early Care and Learning, and the total amount of the tax credit given to employers cannot exceed $20 million. The employer tax credit would be repealed and reserved on Dec. 31, 2030.