“At a time when the need for child care services is increasing, we are seeing across the state of Maryland a decline in licensed providers and a decline in capacity,” Council President Stewart said. “We also know child care continues to get more expensive for both families and providers. I am proud to introduce this bill which will provide greater property tax credits to our child care providers, increasing affordability for our current providers and incentivizing new providers to build and operate in Montgomery County. Access to affordable, quality child care is not just a parenting issue but an economic issue as well. Supporting our day cares is essential to making sure our residents are able to live and work in our county and is key to our economic growth.”

During the 2025 Maryland legislative session, the General Assembly passed House Bill 389, enabling Maryland jurisdictions to expand the amount and eligibility of property tax credits to child care providers. 

Under current County law, the tax credit covers registered family child care homes, licensed child care centers, licensed day care centers for the elderly, and licensed day care centers for adults. Following the update to the state law, Bill 21-25 would expand eligibility for the tax credit to include large family child care homes. 

Additionally, the legislation would increase the permitted amount of the tax credit from $3,000 to $10,000. The intent of the bill is to provide targeted tax breaks that will help existing, and new, child care providers stay in operation, while continuing to incentivize construction. 

The bill would also update terminology in accordance with state law, among other measures. Councilmember Gabe Albornoz, Council Vice President Will Jawando, and Councilmembers Andrew Friedson, Sidney Katz, Evan Glass, and Laurie-Anne Sayles are cosponsors. A public hearing is tentatively scheduled for July 8. 

Additional bill details can be found in the Council staff report.