Montgomery County Councilmembers approved legislation Tuesday to increase the tax credit for improvements made to properties at childcare or daycare services.
The legislation increases the permitted amount of the tax credit from the current $3,000 to a maximum of $10,000.
The increased tax credit allows these businesses to succeed and offer parents more options like shorter wait list times.
Childcare Challenges
“Montgomery County is facing a childcare crisis, which reflects a broader statewide trend,” Stewart said earlier. Maryland has lost 15.5% of licensed providers and more than 1,000 home-based providers “in recent years,” she noted.
Large family childcare facilities handling from 9 to 12 children have been exempt from the property tax credit. Now, these groups are eligible. Other eligible groups include registered family childcare home providers, licensed childcare centers, licensed day care centers for adults and licensed day care centers for the elderly.
“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 Stewart, who was lead sponsor of the legislation.
“We also know childcare continues to get more expensive for both families and providers. 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,” Stewart said.
Community Benefits
“Access to affordable, quality childcare is not just a parenting issue but an economic issue as well. Supporting our day cares is essential to making sure our residents are able to live and work in our County and is key to our economic growth,” she added.
“The Children’s Opportunity Alliance applauds Montgomery County for taking the opportunity to revise the property tax credit for childcare and day care, based on lessons learned since it was first introduced in 1988,” said Kimberly Rusnak, executive director of the Children’s Opportunity Alliance. “The amendments both improve equitable access to the property tax credit and increase the value of the credit.”
She added, “By raising the amount of this credit, the County is sending a clear message that it values the educators and small businesses who make it possible for families to work and children to thrive, thus improving our county’s economy.”
