The Montgomery County Council approved legislation to expand property tax credits for childcare providers, using new MACo-backed authority from the 2025 General Assembly to increase support for this essential sector.

Bill 21-25, sponsored by Council President Kate Stewart, increases the maximum property tax credit from $3,000 to $10,000 and extends eligibility to include large family childcare homes. The measure aims to alleviate financial pressures on providers while promoting new investment in childcare capacity.

“At a time when the need for childcare services is increasing, we are seeing across the state of Maryland a decline in licensed providers and a decline in capacity,” said Council President Stewart.

“We also know childcare continues to get more expensive for both families and providers,” Council President Stewart continued. “I am proud to pass this bill, which will provide greater property tax credits to our childcare providers, increasing affordability for our current providers and incentivizing new providers to build and operate in Montgomery County.”

State Enabling Law

The Council’s action follows the General Assembly’s passage of HB 389 (2025 Session), sponsored by Delegate Julie Palakovich Carr. The legislation authorizes counties to expand eligibility and increase the value of local property tax credits for childcare providers.

MACo supported the legislation, noting that childcare access is both a workforce and economic development issue. Counties now hold greater flexibility to:

• Increase credit amounts up to $10,000
• Extend credits to large family childcare homes
• Align the tax treatment of property used by childcare facilities

Why It Matters

Counties across Maryland are facing a decline in licensed childcare providers, even as demand rises and costs burden families and small businesses.

By expanding the property tax credit for childcare providers, Bill 21-25 demonstrates how counties can use State-enabled tools — not top-down mandates — to meet community needs, support providers, sustain capacity, and expand access to affordable childcare.

Council Vice President Will Jawando and Council Members Gabe Albornoz, Andrew Friedson, Sidney Katz, Evan Glass, Laurie-Anne Sayles, and Dawn Luedtke are cosponsors.

When the Council passes a bill, the Council President must deliver it to the County Executive within three days. The Executive then has ten days to either approve or veto the legislation.

Visit the Montgomery County Council website for more information.

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