Active 2026 Tax Credit
Georgia Child Care Cost-Sharing & Credits
Georgia has supercharged its employer child care incentives withHB 136: a 75% tax credit on direct costs plus a$1,000 per-employee credit. Combined with Lottery Pre-K and Federal 45F, Georgia employers canrecover more than their investment.
2026
Program Year
Active
Program Status
45F
Federal Credit Available
All
Employers Eligible
โ๏ธ How the Cost Split Works
Employer Pays
~33%
of total tuition
Georgia Pays
~33%
state match
Parent Pays
~33%
of total tuition
๐ The Georgia Savings Stack
Stack available Georgia programs with the Federal 45F Tax Credit for maximum employer savings.
| Benefit Layer | Small Business (<$32M) | Large Business |
|---|---|---|
| State Program Benefit | Varies by program | Varies by program |
| Federal 45F Credit (2026) | 50% Tax Credit | 40% Tax Credit |
| Net Employer Cost | Significantly Reduced | Significantly Reduced |
๐ฐ Real-World Employer Savings
| Cost Component | Without Program | With State + 45F Stack |
|---|---|---|
| Annual child care cost (per employee) | $12,000 | $12,000 |
| State Program Benefit | $0 | Varies |
| Employee Share | $0 | Reduced |
| Employer Share | $12,000 | Reduced |
| Federal 45F Credit (50% of employer share) | $0 | Significant savings |
| Net Employer Cost | $12,000 | Significantly Lower |
๐ All Available Programs
Federal 45F Tax Credit
Federal Tax Credit
Up to $600,000/year
All U.S. employers
Duo-Share Program
Employer-Employee Split
Flexible cost sharing
All employers โ no state required
๐ Geographic Coverage
Major Cities Served
County Coverage
All 159 Georgia counties are eligible for the HB 136 employer tax credit (75% for small biz). Contact DECAL for enrollment and GEEARS for employer resources.
โ Frequently Asked Questions
Georgia does not operate a traditional 33/33/33 Tri-Share grant. However, as of 2026, the state offers a robust75% Employer Tax Credit (HB 136)plus a $1,000 per-employee credit that effectively creates a powerful cost-sharing model.
Under O.C.G.A. ยง 48-7-40.6 and the 2026 HB 136 expansion, businesses that provide or sponsor child care can claim a credit of up to75% of their direct costs. Additionally, employers get a flat$1,000 credit per employeein the first year if they cover at least $1,000 in child care costs.
If an employer pays at least $1,000 toward an employee's child care costs, they can claim a flat$1,000 state tax credit in the first yearand $500 in subsequent years, providing an immediate 100% ROI for that first $1,000.
Georgia's Lottery-Funded Pre-K is one of the oldest universal pre-K programs in the nation, providingfree preschool for all 4-year-oldsregardless of income. This eliminates the child care cost for that age group.
The Childcare and Parent Services (CAPS) program provides income-based child care subsidies for working families. In 2026, it serves families up to 50% of the State Median Income.
Yes. Georgia employers can stack the 75% state credit with the Federal 45F Credit (50% of qualified expenses, max $600,000/year). In some cases, this means employers canrecover more than their original investment.
GEEARS (Georgia Early Education Alliance for Ready Students) is a leading advocacy organization that has released a specializedBusiness Toolkitin 2026 to help Atlanta-area employers implement the new tax credits.
๐ References & Sources
Last Updated: March 1, 2026
๐ Available Programs & Incentives
Georgia HB 136 Employer Tax Credit
State Tax Credit
75% credit (small biz) / 50% (large) โ up to $1,000/employee
Eligibility: All Georgia employers with qualifying child care expenses
GEEARS Employer Partnership
Regional Program
Employer matching grants and consulting
Eligibility: Georgia employers in metro Atlanta and beyond
Georgia Pre-K
State Program
Free pre-K for all Georgia 4-year-olds
Eligibility: All Georgia 4-year-olds
Federal Section 45F Credit
Federal Tax Credit
Up to 50% of employer costs (max $600K/yr)
Eligibility: All U.S. employers with qualifying child care expenses
Childcare and Parent Services (CAPS)
State Subsidy
Sliding-scale co-pay based on income
Eligibility: Families at or below 85% SMI
Duo-Share (Employer + Employee)
Employer Benefit
Flexible split โ employer covers 25โ75%
Eligibility: Any Georgia employer, no state program required
โ Frequently Asked Questions
HB 136 created an employer tax credit of 75% for small businesses and 50% for larger businesses on contributions toward employee child care costs, up to $1,000 per employee per year. Contact DECAL for enrollment.
Yes โ Georgia employers can stack the HB 136 state credit with the Federal Section 45F Credit. Small businesses can effectively offset 75%+ of their child care contributions through combined credits.
GEEARS (Georgia Early Education Alliance for Ready Students) is a nonprofit that connects Georgia employers with child care resources, matching grants, and consulting services to help set up employer-sponsored child care programs.
Atlanta, Savannah, Augusta, Columbus, and Macon have the highest employer participation rates. GEEARS focuses primarily on metro Atlanta but serves employers statewide.
Georgia does not have a formal Tri-Share program. However, HB 136 and GEEARS partnerships create a strong employer incentive. We recommend a Duo-Share model โ contact us for a free consultation.
Georgia Pre-K provides free pre-K for all Georgia 4-year-olds regardless of family income. It is one of the oldest and most comprehensive state pre-K programs in the country.
Contact the Georgia Department of Early Care and Learning (DECAL) at decal.ga.gov or the Georgia Department of Revenue for guidance on claiming HB 136 credits.