Advocacy
Lawmakers propose bills offering childcare tax credits for businesses, parents

ADVOCACY
Lawmakers propose bills offering childcare tax credits for businesses, parents
BIRMINGHAM, Ala. (WBRC) – Alabama lawmakers are considering a bill that aims to increase the number of people who can join the state’s workforce by offering childcare tax credits to employers. Governor Ivey and other lawmakers hope to incentivize employers to provide more childcare, which can help increase labor force participation rates.
House Bill 358 proposes to give childcare tax credits to employers, which will help working parents of young children who currently miss, on average, about 46 hours of work during the first six months of 2023. According to Rhonda Mann with Voices for Alabama’s Children, many employers only have 75% of their staff, which can lead to disruptions in providing childcare.
The legislation seeks to address this issue by providing incentives for businesses to provide on-site childcare and tax credits for families. Representative Anthony Daniels explains that mothers who work at any manufacturer in Alabama that qualifies for this credit can receive up to $2,000 either in their check or as a reimbursement directly to the childcare provider.
In addition to incentivizing childcare, the package of bills also includes the workforce housing tax credit for people interested in qualified workforce housing projects in Alabama. Lawmakers believe that these measures will not only strengthen the workforce and economy but also build a stronger foundation for education.