NEW!
Alabama Childcare Tax Credit
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an employer tax credit, a childcare facility tax credit
and a nonprofit childcare provider grant program
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As part of the "Working for Alabama" workforce legislation, Alabama's new Childcare Tax Credit was signed into law in May. Â
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(from AlabamaReflector.com and APNews.com)
The tax credit is part of a package of bills designed to address low workforce participation in the state. Alabama’s workforce participation rate in March 2024 was 57.7%, according to the Federal Reserve Bank of St. Louis. The national rate in April was 62.7%, according to the Bureau of Labor Statistics.  Experts have cited a lack of access to child care as one of the reasons for the low rate.
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The Childcare Tax Credit (HB 358)Â establishes an employer tax credit, a childcare facility tax credit and a nonprofit childcare provider grant program which aims to encourage employers to help fund childcare for employees. The bill passed 31-0 in the Alabama Senate.
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The proposal also would provide tax credits and grants to providers, with incentives aimed at expanding the availability of care and improving quality.
