What does Alabama’s Childcare Act mean for local childcare centers?
Published 9:00 am Saturday, March 15, 2025
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The Childcare Act, signed into Alabama law last year, incentivizes employers to provide internal or external childcare services to its employees. This program is important for many young families juggling a work-life balance, especially with the increasing waiting lists.
Chambers County has many afterschool, childcare and summer programs but many of them are expensive and all of them seem to have long waiting lists. They have to do this in order to balance the increasing demand, not just locally but nationally.
Krisse Story, owner of Learning Treasure Preschool, said the childcare industry is rapidly changing. She said they get calls almost every day asking about infant and toddler care, where the need seems to be greatest right now. Headstart programs, which provide free and reduced childcare for eligible families, help with the older kids, Story said.
“Even from infancy, [quality child care] helps so much with their development, and so that’s what I think parents are seeking,” Story said. “They’re not looking for babysitters. They’re looking for Child Development Centers, people who will help to develop their children because they’re away from them so much.”
The Childcare Incentive Act of 2024 “provides a tax incentive for Alabama childcare providers who own and operate a qualified childcare facility,” according to the Alabama Department of Revenue.
Eligible facilities can claim a facility tax credit of up to $25,000 per year based on their Alabama Quality STARs rating and the monthly average number of eligible children.
As a smaller facility in Lanett, Story said the incentive program won’t have as much of an impact on her business.
“But I do like that childcare owners are being a standby for that. It helps the employee and it helps the employer, and I appreciate the focus that’s being placed on childcare centers because the need for childcare is so great,” Story said. “Not only in our area but there appears to be a great need all across our nation.”
Story said the Treasure Learning Preschool has a waiting list, but even larger childcare centers across the state have expressed a similar issue.
“So I think that any time that childcare owners can be incentivized for the services that we provide, that is a plus for us,” Story said.
According to the ADR, “the credit is available to qualifying childcare providers each year beginning January 1, 2025, until December 31, 2027, unless extended by the legislature.”
For questions regarding eligibility and qualifications of the tax credit, the Alabama Department of Revenue recommends reaching out at incentives@revenue.alabama.gov.
With such a growing industry, Story said she is looking to expand her center to offer more to the community. She recently attended a high school job fair where she encouraged students to pursue the childcare field after high school.
“We love this community, and I can absolutely say that with no uncertainty, that when there’s a need, we try and meet it here as a community,” Story said.