The Frederick County Council unanimously passed legislation to expand its property tax credit for daycare providers, increasing local support for an essential sector facing rising costs and persistent provider shortages.
Under Bill 25-13, introduced by Council Member Renee Knapp and Council President Brad Young, the maximum allowable property tax credit for qualified daycare providers will increase from $3,000 to $10,000 per property.
The change also extends eligibility to include family childcare homes and group day care centers on business property, broadening the base of providers who can benefit.
The Council’s action builds on authority granted by the Maryland General Assembly in 2025, which allowed counties to modify and expand daycare property tax credits following statewide recognition of provider shortfalls. With MACo’s support, lawmakers authorized local governments to increase credit levels and tailor eligibility to local needs, giving counties greater flexibility to address access and affordability challenges.
Why it matters
Childcare providers across Maryland have struggled to keep pace with rising operating costs and increased demand for affordable care. By raising the maximum credit and broadening eligibility, Frederick County seeks to make local tax policy a tool for sustaining existing providers and encouraging new ones to locate or expand in the county.
Local property tax credits like this one reflect how counties leverage authority to tailor fiscal tools to community needs. Rather than imposing a statewide, uniform solution, Frederick County’s approach gives providers greater financial predictability and helps reduce the tax burden associated with facility improvements and operations.
