Alabama Bill Aims to Provide Affordable Childcare Options with Tax Credits and Grants

An Alabama bill designed to boost workforce participation by making childcare more accessible and affordable is moving forward in the state legislature. The bill (HB358) offers tax credits to employers providing on-site childcare and to childcare providers expanding their services. Nonprofit childcare providers would also be eligible for grants. The bill aims to create childcare options for thousands of Alabama families, with an estimated 7,000 families benefiting in the first year and up to 24,000 over three years. It is part of the ‘Working for Alabama’ package, which seeks to address barriers to workforce participation, as Alabama’s labor force participation rate is among the lowest in the US. The bill passed the Alabama House unanimously and will now be considered by the state Senate.

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