Childcare centers are struggling to make ends meet, and an approved tax credit is a first step to boost the system.
Although Few Providers Will Be Eligible, Texas Counties Welcome Child Care Center Tax Credit (Photo: KSAT)
Child care center tax credit will be implemented in some cities in Texas
The childcare centers in Texas struggle to stay open because of financial griefs but a new tax credit for providers is gaining traction in the state’s biggest metropolitan areas. Its reach is limited to just a fraction of the providers in Texas, but the exemption will be a boon for owners who can take advantage of it.
The tax credit for childcare centers was pushed for as many as possible, as quickly as possible, said Kim Kofron, senior director of education for Children at Risk, a nonprofit advocacy group in Texas.
San Antonio, Dallas, Austin, and Houston child care centers have in recent months availed the new property tax exemption for land that owners say will save them thousands of dollars each year at a time when they are stressed to keep up with staff and wages amid increasing costs.
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The tax credit for child care centers known as Proposition 2, has also passed in El Paso County, the City of Denton, Hays County, and Aransas County
The tax credit for childcare centers will allow the property owner to be exempt from 50% to 100% of their property valuation when paying taxes.
The tax credit for child care centers includes requirements that landlords of those properties pass the savings along to renters if the center owners don’t own the property, although questions remain about how it would be enforced.
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