Ohio State Representatives Lauren McNally (D-Youngstown) and Crystal Lett (D-Columbus) introduced Ohio House Bill 140, the Thriving Families Tax Credit, in March. The proposal authorizes a refundable credit of $1,000 per child under six years old and $500 for children under 18, as detailed in a roundtable discussion in Dublin in May.
Under the bill, families with incomes under $65,000 a year would receive the full benefit, gradually reducing it to $85,000. Policy Matters Ohio indicated that taxpayers with incomes under $24,000 would receive an average reduction of $122 a year. “That’s only about $10 a month,” Lett said.
Ohio Act 140: A tax credit that offers thousands of dollars to families in the state
The credit would benefit 1.8 million children in the state. “It sends a strong message that we are listening,” McNally said. Ohio would join 13 states with similar credits, including Idaho and Vermont. The initiative seeks to alleviate living costs and redistribute tax burdens, according to its proponents.
The Thriving Families Tax Credit targets middle- and low-income families. Lett argued that “the tax burden falls overwhelmingly on the working class.” The proposal was reintroduced in March after failing to advance in previous legislative sessions. How the program would be funded or its full fiscal impact was not specified.
Another program will provide tax credits in Georgia
In parallel, Georgia implemented similar measures. Governor Brian Kemp signed House Bill 136, which provides $250 per child under six years old starting in 2026. The state credit supplements the federal credit and is applicable if the child resides with the applicant for more than six months, according to the regulations.
Lt. Governor Burt Jones called the law a “priority for working families.” The Senate Study Committee on Access to Affordable Child Care recommended its passage. Businesses will also receive tax incentives for supporting employee childcare expenses.
HB 136 allows employers to claim $1,000 per child in 2026 and $500 in subsequent years, with an annual cap of $20 million. Applications will be processed through the Department of Early Care and Learning. The state credit will increase the federal contribution from 30% to 50% for childcare expenses.
Who’s excluded from the child tax credits?
According to Jones, the law seeks to make Georgia “more attractive to families and businesses.” The changes will take effect in July 2025, but the credits will be claimed starting in 2027. WABE reported that the bill prioritizes reducing the costs of childcare and similar services for working parents.
These two programs are distinct in that, while Ohio offers credits based on age and income, Georgia focuses on children under six. Both exclude higher-income families who don’t need tax assistance, although they have different thresholds. In Georgia, the credit is nonrefundable, limiting its scope to those with tax obligations.
HB 136 was supported by both Republican and Democratic lawmakers, according to local media. In Ohio, the bill faces a divided party landscape, although its authors are confident of achieving cross-party support.