Sec. 52-94. Day care property tax credit.
Montgomery County, Md., Code § 52-94 (2026)
Sec. 52-94. Day care property tax credit.LinkCopy Citation
(a)
Credit for child care or day care provider.
(1)
A taxpayer may receive a property tax credit against the general County tax and special service area taxes for an improvement on real property if the improvement is used exclusively for child care or day care services under state law as a:
(A)
registered family child care home or large family child care home under Title 9.5, Subtitle 3 of the Education Article of the Maryland Code, as amended;
(B)
licensed child care center under Title 9.5, Subtitle 4 of the Education Article of the Maryland Code, as amended;
(C)
licensed day care center for the elderly under Title 14, Subtitle 2 of the Health – General Article of the Maryland Code, as amended; or
(D)
licensed day care center for adults under Title 14, Subtitle 3 of the Health – General Article of the Maryland Code, as amended.
(2)
For each improvement, the credit must not exceed in each year the lesser of:
(A)
$10,000; or
(B)
the amount of the general county tax and special service area taxes attributable to the improvement.
(3)
The Department of Finance administers this subsection. A taxpayer must apply for the tax credit with the Department of Finance by April 1 to receive the credit in the next taxable year. The taxpayer must certify in writing that the child care or day care provider:
(A)
is licensed or registered by the State; and
(B)
will accept clients whose care is subsidized by the County, State, or federal government, if the child care or day care provider has space.
(4)
A taxpayer must not receive a credit under this subsection if the real property qualifies for a credit under subsection (b).
(b)
Credit for family child care home or child care center on business property.
(1)
A taxpayer may receive a property tax credit against the general County tax and special service area taxes for an improvement on real property owned by a business with at least 25 employees if the improvement is used exclusively for child care services under state law as a:
(A)
registered family child care home or large family child care home under Title 9.5, Subtitle 3 of the Education Article of the Maryland Code, as amended; or
(B)
licensed child care center under Title 9.5, Subtitle 4 of the Education Article of the Maryland Code, as amended.
(2)
For each improvement, the credit must not exceed in each year the lesser of:
(A)
$10,000; or
(B)
the amount of the general County tax and special service area taxes attributable to the improvement.
(3)
The Department of Finance administers this subsection. A taxpayer must apply for the tax credit with the Department of Finance by April 1 to receive the credit in the next taxable year. The taxpayer must certify in writing that the child care or day care provider is licensed or registered by the State.
(c)
Executive regulations.
The County Executive must adopt regulations under method (3) to implement this Section.
(d)
Reports.
The County Executive must report annually to the County Council on the use of the day care and child care property tax credit.