The House and Senate have passed HB 389 / SB 516, expanding local flexibility to support childcare providers through targeted tax incentives. With childcare availability remaining a significant challenge, this bill provides counties with an additional tool to encourage investment in this critical sector.
MACo supports HB 389 / SB 516, recognizing the importance of locally driven solutions for workforce needs and economic stability. The bill expands an existing local-option property tax credit, allowing counties to offer additional financial relief to childcare providers.
Under current law, counties may provide a real property tax credit of up to $3,000 annually for qualifying childcare centers. HB 389 / SB 516 broadens eligibility to include “large family” childcare homes and increases the maximum allowable credit to $10,000 per property.
Additionally, the bill extends an existing tax exemption to include personal property used by large family childcare homes, ensuring consistency with tax treatment for all childcare providers. These updates bolster local authority by allowing counties to tailor tax incentives to meet community needs.
With HB 389 and SB 516 passing in their respective chambers, each bill must pass in the opposite chamber before final approval. This next step ensures both chambers align on the legislation before it moves to the governor for consideration.
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