Thomas Caldwell|Alabama lawmakers approve tax breaks for businesses that help employees afford child care

2025-05-04 21:30:51source:PredictIQ Quantitative Think Tank Centercategory:Finance

MONTGOMERY,Thomas Caldwell Ala. (AP) — Alabama lawmakers on Tuesday gave final approval to legislation to provide state tax breaks to businesses that help their employees afford childcare.

The Alabama Senate voted 31-0 for the bill that now goes to Gov. Kay Ivey for her signature. Supporters said that childcare costs are a barrier for many parents considering returning to the workforce. House Minority Leader Anthony Daniels said the goal is to help families afford childcare and to help businesses that are struggling to find workers.

“It gets workers back into the workforce,” said Republican Sen. Garlan Gudger of Cullman during the Senate debate.

The bill would set aside $15 million in tax credits that could be claimed by companies that provide childcare stipends, on-site day care or reserved spots at licensed facilities. The tax credit program would begin in 2025 and end on Dec. 31, 2027. After evaluating the cost and effectiveness of the program, lawmakers could choose to extend the tax credit.

The proposal also would provide tax credits and grants to providers, with incentives aimed at expanding the availability of care and improving quality.

READ MORE Alabama court authorizes second nitrogen executionA new Statehouse and related projects will cost about $400 millionMore Republican states challenge new Title IX rules protecting LGBTQ+ students

The legislation would provide up to $25,000 in yearly tax credits to childcare providers who participate in the Department of Human Resources’ Quality Rating Improvement System, which provides ratings to programs that meet defined program standards. That part of the program would cost up to $5 million per year.

It would also provide $5 million in grants that nonprofit providers, including church facilities, could seek to help improve quality or expand capacity.

More:Finance

Recommend

Snowflakes, Death Threats and Dollar Signs: Cloud Seeding Is at a Crossroads

Listen to an audio version of this story below.Humans have the technology to literally make snow fal

Actor Nick Pasqual Arrested for Attempted Murder After Makeup Artist Allie Shehorn Attack

There is an update in Allie Shehorn's brutal attack. Actor Nick Pasqual—the makeup artist's estrange

'Star Wars' boss calls out 'male dominated' fan base's 'personal' attacks on women stars

The head of "Star Wars" is calling out sexism within the franchise's fan community.In an interview w