Kacper Sobieski|Alabama lawmakers approve tax breaks for businesses that help employees afford child care

2025-05-04 21:45:58source:Marc Leclerccategory:My

MONTGOMERY,Kacper Sobieski 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:My

Recommend

All That You Wanted to Know About She’s All That

This movie was all that.Case in point: She’s All Thathad Freddie Prinze Jr., Rachael Leigh Cookand a

Prince Harry in court: Here's a look at legal battles the Duke of Sussex is fighting against the U.K. press

London - Prince Harry is testifying in a U.K. court this week — the first time a senior member of Br

Tijuana mayor says she'll live at army base after threats, 7 bodies found in truck

The mayor of the Mexican border city of Tijuana said she has decided to live at an army base for her