Raising a child in the US can be expensive — from daily food and clothes to school and daycare costs. That’s why some states are now stepping in to help families, especially those with lower incomes.
Two major new child tax credit programs are being introduced in Ohio and Georgia, and they could put hundreds or even thousands of dollars back into the hands of working parents.
Ohio’s Thriving Families Tax Credit: What’s in House Bill 140?
In March 2025, Ohio Representatives Lauren McNally and Crystal Lett introduced a new bill called House Bill 140, also known as the Thriving Families Tax Credit. The idea is to give money back to parents raising kids, helping them cover basic expenses like food, clothes, and childcare.
Here’s what the bill offers:
- $1,000 per child under age 6
- $500 per child under age 18
These payments would be given as refundable tax credits, meaning even if a family doesn’t owe taxes, they can still receive the full amount as a refund.
Who Can Get the Ohio Child Tax Credit?
The credit will be given to families based on their annual income:
- Families earning up to $65,000 will get the full amount
- The benefit will decrease slowly for incomes up to $85,000
- Families earning more than $85,000 will not qualify
The bill is expected to help 1.8 million children in Ohio. Supporters say this shows the state is listening to families and trying to ease the financial pressure on working-class households.
Policy Matters Ohio, a research group, noted that those with very low incomes (under $24,000) would also see their taxes reduced by around $122 per year, which works out to about $10 per month.
Why Is This Important for Ohio?
Ohio wants to join the growing list of 13 other US states, like Idaho and Vermont, that offer similar credits. The goal is to help working families afford everyday needs and make the tax system fairer for those who earn less.
However, it’s not clear yet how the state will fund the program, and some lawmakers may resist it. The bill had been introduced earlier but didn’t pass — this time, the authors are hopeful for cross-party support.
Georgia’s New Child Tax Credit: A Different Approach
While Ohio’s credit is based on the child’s age and family income, Georgia’s House Bill 136, signed by Governor Brian Kemp, focuses only on children under 6 years old.
Starting in 2026, Georgia families will receive:
- $250 per child under six (if the child lived with the parent for more than six months)
- Employers can also get a $1,000 tax credit per child for offering childcare help to employees
From 2027 onwards, this employer benefit drops to $500 per child
The Georgia credit is nonrefundable, which means only families who owe taxes will benefit. It is aimed more at supporting childcare costs, rather than offering broad refunds like Ohio.
Extra Benefits for Businesses in Georgia
Georgia also added incentives for businesses. Employers who help pay for employee childcare can get tax breaks. There’s a yearly statewide cap of $20 million, and applications will go through the Department of Early Care and Learning.
The bill also increases the federal support for childcare — from covering 30% of expenses to 50%, giving working families more relief when paying for daycare or after-school care.
Who Is Not Eligible for These Credits?
Both Ohio and Georgia focus on middle- and low-income families, so high-income families are excluded. However, their programs differ:
- In Ohio, anyone earning more than $85,000 won’t qualify.
- In Georgia, since the credit is nonrefundable, those who don’t owe taxes won’t benefit, even if their income is low.
These credits are part of broader state efforts to make life more affordable and support working families — especially at a time when the cost of raising children continues to climb.