25 LC 50 1009
Senate Bill 89
By: Senators Strickland of the 42nd, Hatchett of the 50th, Brass of the 6th, Beach of the 21st,
Rhett of the 33rd and others
AS PASSED SENATE
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to
1
income taxes, so as to increase the amount of a tax credit based on the federal tax credit for2
certain child and dependent care expenses to 40 percent of such federal tax credit; to provide3
for a child income tax credit; to provide for definitions; to provide for limitations and4
proration; to provide for rules and regulations; to revise a tax credit for employers providing5
child care; to decrease the number of children who use the facility that are required to be6
children of employees to qualify for such credit; to increase the amount of the credit; to7
provide for related matters; to provide for an effective date and applicability; to repeal8
conflicting laws; and for other purposes.9
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:10
SECTION 1.11
Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to income taxes,12
is amended by revising Code Section 48-7-29.10, relating to tax credits for qualified child13
and dependent care expenses, as follows:14
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"48-7-29.10.
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(a) A taxpayer shall be allowed a credit against the tax imposed by Code Section 48-7-2016
for qualified child and dependent care expenses. Such credit shall be determined by
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applying a percentage to The amount of such credit shall be equal to 40 percent of the18
amount of the credit provided for in Section 21 of the Internal Revenue Code which is19
claimed and allowed pursuant to the Internal Revenue Code. Such percentage shall be:20
(1) Ten percent for all taxable years beginning on or after January 1, 2006, and prior to21
January 1, 2007;22
(2) Twenty percent for all taxable years beginning on or after January 1, 2007, and prior23
to January 1, 2008; and24
(3) Thirty percent for all taxable years beginning on or after January 1, 2008.25
(b) In no event shall the total amount of the tax credit under this Code section for a taxable26
year exceed the taxpayer's income tax liability. Any unused tax credit shall not be allowed27
to be carried forward to apply to the taxpayer's succeeding years' tax liability. No such tax28
credit shall be allowed the taxpayer against prior years' tax liability.29
(c) The commissioner shall be authorized to promulgate any rules and regulations30
necessary to implement and administer this Code section."31
SECTION 2.32
Said chapter is further amended by adding a new Code section to read as follows:33
"48-7-29.27.34
(a) As used in this Code section, the term 'qualifying child' shall have the same meaning35
as set forth in Section 24(c) of the Internal Revenue Code, provided that such child has not36
yet attained age seven.37
(b) For taxable years beginning on or after January 1, 2025, a taxpayer shall be allowed38
a credit against the tax imposed by Code Section 48-7-20 in an amount equal to $250.0039
for each qualifying child of the taxpayer.40
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(c) In no event shall more than one taxpayer be allowed the tax credit granted under this41
Code section for the same qualifying child. In the case of parents or legal guardians who42
do not file income taxes jointly for any reason, the child shall be the qualifying child for43
only one parent or legal guardian, which shall be the parent or legal guardian who had44
custody of the qualifying child for more than one-half of the tax year in question; provided,45
however, that the noncustodial parent or legal guardian may claim the credit if:46
(1) A court of competent jurisdiction has unconditionally awarded, in writing, the47
noncustodial parent or legal guardian the tax credit authorized under this Code section,48
and such parent or legal guardian attaches a copy of the court order with his or her tax49
return; or50
(2) The noncustodial parent or legal guardian attaches a copy of a written declaration51
made by the custodial parent or legal guardian of a qualifying child that he or she assigns52
the credit to the noncustodial parent or legal guardian and will not claim the credit53
allowed under this Code section with respect to such child for such tax year.54
(d) Notwithstanding the provisions of subsection (b) of this Code section, in the case of55
any taxable nonresident or part-year resident whose tax was prorated as provided by Code56
Section 48-7-85, the amount of the credit determined pursuant to such subsection shall be57
prorated based on the ratio of income taxable to this state as properly reported on Schedule58
3, Line 9 of the Georgia Form 500 for the taxable year.59
(e) In no event shall the total amount of the tax credit under this Code section for a taxable60
year exceed the taxpayer's income tax liability. Any unused tax credit shall not be allowed61
to be carried forward to apply to the taxpayer's succeeding years' tax liability. No such tax62
credit shall be allowed the taxpayer against prior years' tax liability.63
(f) The commissioner shall be authorized to promulgate rules and regulations necessary64
to implement and administer the provisions of this Code section."65
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SECTION 3.
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Said chapter is further amended by revising paragraph (6) of subsection (a) and subsections67
(b) and (c) of Code Section 48-7-40.6, relating to tax credits for employers providing child68
care, as follows:69
"(6)(A)
'Qualified child care property' means all real property and tangible personal70
property purchased or acquired on or after July 1, 1999, or which property is first71
placed in service on or after July 1, 1999, for use exclusively in the construction,72
expansion, improvement, or operation of an employer provided child care facility, but73
only if:74
(A)(i) The facility is licensed or commissioned by the Department of Early Care and75
Learning pursuant to Chapter 1A of Title 20;76
(B)(i) At least 95 75 percent of the children who use the facility are children of77
employees of:78
(i)(I) The taxpayer and other employers in the event that the child care property is79
owned jointly or severally by the taxpayer and one or more employers; or80
(ii)(II) A corporation that is a member of the taxpayer's 'affiliated group' within the81
meaning of Section 1504(a) of the Internal Revenue Code; and82
(C)(iii) The taxpayer has not previously claimed any tax credit for the cost of83
operation for such qualified child care property placed in service prior to taxable years84
beginning on or after January 1, 2000.85
(B) Such term Qualified child care property includes, but is not limited to, amounts86
expended on land acquisition, improvements, buildings, and building improvements87
and furniture, fixtures, and equipment."88
"(b) A tax credit against the tax imposed under this article shall be granted to an employer89
who provides or sponsors child care for employees. The amount of the tax credit shall be90
equal to 75 90 percent of the cost of operation to the employer less any amounts paid for91
by employees during a taxable year.92
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(c) The tax credit allowed under subsection (b) of this Code section shall be subject to the
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following conditions and limitations:94
(1) Such credit shall not exceed 50
75 percent of the amount of the taxpayer's income tax95
liability for the taxable year as computed without regard to any other credits;96
(2) Any such credit claimed but not used in any taxable year may be carried forward for97
five years from the close of the taxable year in which the cost of operation was incurred;98
and99
(3) The employer shall certify to the department the names of the employees, the name100
of the child care provider, and such other information as may be required by the101
department to ensure that credits are granted only to employers who provide or sponsor102
approved child care pursuant to this Code section."103
SECTION 4.104
This Act shall become effective on July 1, 2025, and shall be applicable to all taxable years105
beginning on or after January 1, 2025.106
SECTION 5.107
All laws and parts of laws in conflict with this Act are repealed.108
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