House passes workforce package, including Daniels’ childcare tax credit bill

MONTGOMERY — The Alabama House of Representatives unanimously passed a bill today which would provide employer, provider, and non-profit provider tax credits to expand childcare capacity, access, and affordability.

The bill, sponsored by House Minority Leader Anthony Daniels, is part of the “Working for Alabama” economic incentive package endorsed by Gov. Kay Ivey, bipartisan leadership in both chambers, as well as major employers such as Airbus and Toyota.

“This is a huge win for everyone in Alabama, especially workers, employers, and families. Not only will this have a positive impact on our state’s labor force participation rate, but it will also help employers attract and retain their workers,” said Daniels (D-Huntsville). “Too many working parents have struggled with the issue of child care and this is a big step in the right direction.

“This will also have the added benefit of improving educational achievement and outcomes for children throughout Alabama.” 

The bill will now advance to the Alabama Senate for consideration. A companion bill was introduced in the Senate by Sen. Garlan Gudger (R-Cullman) and has been assigned to the Senate Committee on Finance and Taxation- Education.

Along with the Childcare Tax Credit, other bills passed were:

• The Alabama Workforce Housing Tax Credit
• The Alabama Growth Alliance Act
• The Alabama Workforce Transformation Act
• The Alabama Career Pathways Act

One area that has been a key issue to address by both chambers of the Legislature and the governor is Alabama’s labor force participation rate – which currently ranks as one of the worst in the nation.

The Alabama Workforce Transformation Act, sponsored by Rep. Danny Garrett (R-Trussville), aims to solve this issue by merging duplicative workforce development agencies and programs under a central agency to increase efficiency and create accountability for outcomes.

“I’m proud of our members for coming together and getting these important bills passed in such a strong fashion,” said House Speaker Nathaniel Ledbetter (R-Rainsville). “The Working for Alabama Package builds on our historic economic success by addressing many of the key challenges standing between our state and its full potential.

“I have no doubt that our efforts to support Alabama’s working families and streamline Alabama’s workforce development initiatives will take our state to new heights.”