Child Care Tax Credit

Employers who provide state-licensed childcare for employees are eligible for a credit against their State income tax liability that is equal to 75% of their direct costs. Employers who purchase or build their own qualified childcare facilities are eligible to receive tax credits equal to 100% of the cost of construction. Child care credits can be used to offset up to 50% of a company’s state income tax liability in a given year, and unused credits may be carried forward for 3 years.

Georgia’s Childcare Tax Credit
Requirements to Qualify	Forward Time	Credit can Off-Set…	$ Amount of Credit
Employer Provides State-Licensed Childcare for Employees	3 Years	Up to 50% of State tax liability	75% of Direct Costs for Childcare in a Given Year
Employer Purchases or Builds Qualified Childcare Facility for Employees	3 Years	Up to 50% of State tax liability	100% of Construction or Purchase Costs in a Given Year