Legislation would give tax credits to companies that help workers afford childcare

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Alabama lawmakers have advanced legislation that would provide state tax breaks to businesses that help their employees afford childcare.

MONTGOMERY, Ala. — Alabama lawmakers on Tuesday advanced legislation that would provide state tax breaks to businesses that help their employees afford childcare.

House Minority Leader Anthony Daniels, the bill's sponsor, said the goal is to help struggling families to afford childcare and to help businesses that are struggling to find workers. 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.

“For women and families that need to be in the workforce, having access to childcare is a critical barrier and we’ve known this for a very long time. This is not new news. But this is one of the new solutions,” Bridgeforth said.

 

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