Some GA Residents Could Qualify For New Tax Credit

ATLANTA, GA — Gov. Brian Kemp on Tuesday signed House Bill 136, which expands the child income tax credit and introduces a new credit for children younger than age 6 in Georgia.

HB 136 will allow for a credit of $250 for each qualified child, starting on or after Jan. 1, 2026. The new law will take effect on July 1.

The credit will only apply to one parent or legal guardian who had the child for more than half the taxable year, according to the legislation.

Lt. Gov. Burt Jones said HB 136 makes way for a rise in a federal tax credit for dependent care expenses, stretching the credit from a 30 percent match to 50 percent.

Employers will now be able to cover childcare expenses under HB 136, being able to claim a $1,000 credit in the first year and $500 thereafter for any staffer for whom the employer covers at least $1,000 in child care costs, Jones said.

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"This legislation being signed into law ensures that Georgia’s families have access to affordable and quality childcare, while encouraging more businesses to offer childcare," Jones said in a news release. "I am proud that we achieved just that, but know there is more work to be done on behalf of Georgia’s families and children. I look forward to continuing our work to ensure that Georgia’s workforce, our childcare providers and families are supported.”

Reps. Mark Newton, Shaw Blackmon, Trey Rhodes, Brent Cox, Brian Prince and Sheila Jones sponsored the bill in the Georgia House, and Sen. Brian Strickland sponsored HB 136 in the Georgia Senate.

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