Georgia CommonsHB 1474: Supporting Early Education and Development (SEED) Act; enact
Last action March 4, 2026 · House Second Readers
House Bill 1474 would create a Georgia income tax credit for donations to licensed childcare organizations and require the state to publish an annual map of 'childcare deserts' where slots for young children are scarce.
The summaries below were written by an AI model (claude-sonnet-5) from the text of the bill and are not part of it. Quote the text, not the summary. The stored text is the Introduced version, the latest LegiScan holds.
In plain language
Georgia currently has no dedicated tax credit for donations to childcare providers. This bill, called the Supporting Early Education and Development (SEED) Act, would require the Department of Early Care and Learning to publish an updated map each year showing areas where demand for care for children ages zero to five outstrips licensed slots by at least three to one. It also creates a new income tax credit (O.C.G.A. § 48-7-40.19) for individuals and corporations who donate to qualifying childcare organizations that are nonprofit and Quality Rated by the state. Credits are capped per taxpayer and capped statewide at $100 million per year, with the first half of each year reserved for donations to organizations in childcare deserts or serving infants and toddlers. Organizations receiving donations must spend most of the money on teacher pay and retention bonuses, and the state auditor must review the program yearly. The changes would take effect July 1, 2026, applying to tax years starting in 2027.
What the bill does
- Requires the Department of Early Care and Learning to publish an annual online map showing 'childcare deserts,' areas where demand for care for children under five exceeds licensed slots by 3-to-1 or more.
- Creates a new state income tax credit for individuals and corporations who donate to qualifying nonprofit, Quality Rated childcare organizations.
- Sets per-taxpayer credit limits ($5,000 for individuals, $10,000 for joint filers, $25,000 for LLC/partnership/S-corp members) and a $100 million annual statewide cap.
- Requires donors to get state preapproval before donating, with the first half of each year prioritized for childcare deserts and infant/toddler capacity.
- Requires childcare organizations to spend at least 60% of tax-credit-eligible donations on teacher salary supplements or retention bonuses, with a 90-day cure period for noncompliance.
- Directs the Department of Audits and Accounts to conduct an annual audit of the tax credit program.
Who it affects
Parents and children seeking infant and toddler care, licensed childcare providers and their teachers, individual and corporate taxpayers who want to claim the new credit, the Department of Early Care and Learning, the Department of Revenue, and the Department of Audits and Accounts, which must administer, preapprove, and audit the program.
Why it matters
Georgians in areas with few childcare slots could see more donations flow to local providers, and childcare workers at participating organizations could get pay raises or retention bonuses funded by donations. Taxpayers who donate would reduce their state tax bills, within capped limits, starting with the 2027 tax year.
Key provisions
- Section 3 adds a duty for the Department of Early Care and Learning to publish and update a childcare desert map on its website by November 1 each year.
- Section 4 creates O.C.G.A. § 48-7-40.19, defining 'childcare desert,' 'childcare organization,' and 'qualified childcare organization expense' for purposes of the new credit.
- Subsection (c) caps individual credits at $5,000 (single/head of household), $10,000 (joint filers), or $25,000 (LLC members, S-corp shareholders, partners).
- Subsection (d) caps corporate credits at the lesser of the amount donated or 75% of the corporation's income tax liability.
- Subsection (f) sets a $100 million annual aggregate cap and splits the year into two preapproval windows, prioritizing childcare deserts and children ages zero to three from January through June.
- Subsection (i) requires childcare organizations to spend at least 60% of credited donations on teacher salary supplements or retention bonuses, with a 90-day cure period for noncompliance before losing eligibility.
- Subsection (l) requires the Department of Audits and Accounts to conduct an annual audit of the program, tracking contributions and credits by organization and donor.
- Section 5 sets the effective date as July 1, 2026, applicable to tax years beginning on or after January 1, 2027.
From the bill
“To publish on the home page of the department's website a map to be updated no later than November 1 of each calendar year identifying geographic areas where the demand for organizations that provide care for children between the ages of zero and five exceeds available licensed slots by a ratio of at least three to one.”
“In no event shall the aggregate amount of tax credits allowed under this Code section exceed $100 million per taxable year.”
“At least 60 percent of the qualified contributions received by childcare organizations for which a taxpayer received a tax credit under the provisions of this Code section must be used by such childcare organizations for teacher salary supplements and retention bonuses.”
Status timeline
- House Second Readers (House)
- House First Readers (House)
- House Hopper (House)
Sponsors
- Samuel Park (D, HD-107)
- Carolyn Hugley (D, HD-141)
- Tanya Miller (D, HD-062)
- Eric Gisler (D, HD-121)
- Lisa Campbell (D, HD-035)
- Tangie Herring (D, HD-145)
Topics
- childcare access
- tax credits
- early childhood education
- childcare deserts
- teacher pay