Georgia Employer Childcare Expense Credit

On this page find information and instructions for claiming the Georgia Employer Childcare Expense Credit.

  • Tax Credit Code: 162

Summary

For taxable years beginning on or after January 1, 2026, a taxpayer is allowed a tax credit for eligible childcare payments. Payments must total at least $1,000 per year for each employee for whom the payment is made.  Eligible payments are made directly to a childcare facility whose employees' children are enrolled and under the age of six.  For the first taxable year in which the taxpayer provided eligible childcare payments for employees, the tax credit is $1,000 per child.  After the first year, the tax credit amount equals $500 per child for payments made per taxable year.  A taxpayer seeking to claim the tax credit will submit a preapproval application electronically to the Department through the Georgia Tax Center.

The aggregate amount of tax credits allowed is $20 million per year. 

The total amount of the tax credit for a taxable year cannot exceed the taxpayer’s income tax liability. Any unused tax credit cannot be carried forward to the succeeding year’s tax liability or carried back to prior years’ tax liability.

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