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City hopes tax breaks will provide families with more childcare options
Idaho

City hopes tax breaks will provide families with more childcare options

(Seguin) – The City of Seguin is taking advantage of a state law designed to help provide more child care options in the community.

Alora Wachholz, deputy director of economic development for the city of Seguin, says state law gives the city the opportunity to provide tax breaks to qualified child care facilities.

“At the last council meeting, I introduced to all of you Senate Bill 1145, which amends Article 8, Section 1-R of the Texas Constitution to allow cities and counties to enact local ordinances that would create a property tax exemption for certain qualified child care facilities,” Wachholz said.

Wachholz says the rules for receiving the tax credit are clearly defined. There are a number of existing daycare centers in Seguin that would qualify, and the hope is that theThis will create even more high-quality childcare options in the city.

“A qualified child care facility, as defined in SB 1145, is a facility that participates in the Texas Rising Star Program, which has certain levels of oversight and requirements for certified providers, and is also a facility where at least 20 percent of the student body receives subsidies from the Texas Workforce Commission,” Wachholz said.

The tax reduction would only apply to the parts of a facility that are used directly for childcare purposes. It would not be an option for childcare outside the home.

“The assessed value that can be exempted under this option only applies to the portion of a facility that is used for child care. So if it is a multi-use facility, the tax only applies to the portion of the building where child care services are actually provided,” Wachholz said.

Quality child care is a real need for communities across the state. City officials hope this move will also bring more quality child care options to the community. Guadalupe County is also eligible to offer this tax break to child care facilities, but this measure would need to be reviewed by the Guadalupe County District Court.

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