HB1474: HB1474 Supporting Early Education and Development (SEED) Act; enact

Georgia currently has no dedicated tax credit for people or businesses who donate to childcare providers, even as the state faces a shortage of licensed childcare slots in many areas. This bill, called the Supporting Early Education and Development (SEED) Act, would require the Department of Early Care and Learning to publish an annual map showing 'childcare deserts,' defined as areas where demand for care for children ages zero to five outstrips licensed slots by at least three to one. The bill also creates a new income tax credit (O.C.G.A. 48-7-40.19) for individuals and businesses who donate to qualifying nonprofit childcare organizations. Credits are capped per taxpayer and capped statewide at $100 million per year, with a preapproval process run by the Department of Revenue. Childcare organizations that receive the money must spend at least 60 percent of it on teacher salary supplements or retention bonuses, with the rest allowed for classroom expansion. The law would take effect July 1, 2026, and apply to tax years starting on or after January 1, 2027.

• Requires the Department of Early Care and Learning to publish and update annually, by November 1, a map identifying 'childcare deserts' where demand exceeds licensed slots by at least 3-to-1.
• Creates a new state income tax credit for individuals and corporations who donate to qualifying childcare organizations, capped at $5,000 for single filers, $10,000 for joint filers, and $25,000 for certain business owners.
• Caps the total statewide value of these tax credits at $100 million per year and requires donors to get state preapproval before making a donation.
• Requires childcare organizations receiving donations to spend at least 60 percent of the funds on teacher salary supplements or retention bonuses, with the remainder allowed for classroom expansion.
• Directs the Department of Audits and Accounts to conduct an annual audit of the tax credit program, and requires the Department of Revenue to post monthly progress reports online.
• Sets an effective date of July 1, 2026, applying to tax years beginning on or after January 1, 2027.

Parents seeking childcare, nonprofit childcare providers that are tax-exempt and 'Quality Rated' by the state, individual and corporate taxpayers who want to claim the credit, childcare teachers eligible for salary supplements, and the Department of Early Care and Learning, Department of Revenue, and Department of Audits and Accounts, which administer and audit the program.

Families in areas with few licensed childcare slots could see new funding flow to local providers, and childcare workers could receive pay boosts meant to reduce turnover. Taxpayers who donate would reduce their state tax bills, while the state caps its total revenue loss at $100 million annually.

• Section 2 lays out legislative findings on early brain development, third-grade reading proficiency, and the economic cost of childcare disruptions in Georgia.
• Section 3 amends O.C.G.A. 20-1A-4 to require an annual public map of childcare deserts by November 1 each year.
• Section 4 adds O.C.G.A. 48-7-40.19, defining 'childcare desert,' 'childcare organization,' and 'qualified contribution,' and setting individual credit limits of $5,000, $10,000, or $25,000 depending on filing status.
• Section 4 caps corporate credits at the lesser of actual expenditure or 75 percent of the corporation's tax liability, and sets the statewide annual cap at $100 million.
• Section 4 requires donors to get preapproval from the commissioner within 30 days and make the donation within set deadlines (by October 31 or December 31 depending on approval date).
• Section 4 requires childcare organizations to spend at least 60 percent of donations on teacher salary supplements or retention bonuses, with a 90-day cure period for noncompliance before losing eligibility.
• Section 4 requires the Department of Audits and Accounts to conduct an annual audit of the program.
• Section 5 sets the effective date as July 1, 2026, applicable to tax years starting on or after January 1, 2027.

1. 2026-03-04House Second Readers (House)
2. 2026-03-03House First Readers (House)
3. 2026-02-26House Hopper (House)

• Samuel Park (D, HD-107)Primary sponsor
• 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)

• childcare
• early education
• tax credits
• state income tax
• childcare workforce