Rep. Bryant Bailey Introduces the Childcare Tax Credit Act to Support Working Families

COLUMBUS — State Rep. Ashley Bryant Bailey (D-Cincinnati) recently introduced House Bill (HB) 804, the Childcare Tax Credit Act, legislation to help working families afford the rising cost of childcare.

Childcare costs in Ohio have jumped 42 percent in just three years. Infant care now averages nearly $14,000 a year, more than in-state college tuition and more than what many families pay in rent.

HB 804 provides direct relief by creating a refundable state tax credit for families with young children. Eligible households could receive up to $2,000 for one child or $4,000 for two or more children. Because the credit is refundable, families receive the full benefit regardless of their tax liability.

"In Cincinnati, infant care costs more than $2,500 a month," said Rep. Bryant Bailey. "That's more than half of a family's income in some cases. Families aren't leaving the workforce by choice - they're being pushed out."

The bill prioritizes working families through an income-based structure, with the full credit going to those who need it most and gradually phasing down for higher-earning households.

"This bill puts real dollars back in the pockets of working families. No parent in Ohio should have to turn down a job or cut their hours because the state refused to act on a crisis it has watched build for years. Childcare is not a luxury. It is infrastructure, and it is time Ohio treated it that way," added Rep. Bryant Bailey. 

The credit would take effect for tax years beginning January 1, 2027.

More information on the cost of childcare in Ohio can be found here.

HB 804 is currently awaiting committee referral.