Douglas County adopts child care property tax incentive program to expand access and support providers

Douglas County is taking action to address the growing need for child care with a new tax incentive program designed to support local providers and expand access for families.

At a Business Meeting on Tuesday, April 14, the Board of Douglas County Commissioners approved a resolution establishing a Child Care Provider Property Tax Incentive Program.  The program will offer property tax rebates to qualifying licensed child care providers, helping them reinvest in their operations, workforce and facilities.

Douglas County is the second county in Colorado to adopt this type of program under a new state law allowing local governments to create targeted property tax incentives for community needs, such as child care. The program was developed through a collaborative, cross-departmental effort and informed by recommendations from local and regional child care studies.

Through the program, eligible providers can receive a rebate covering 75% of the county portion of their real and personal property taxes. Providers who offer care for infants and toddlers may qualify for an additional 25% incentive. To participate, providers must be licensed, in good standing and commit to using the funds for approved expenses such as staff retention, facility improvements or educational materials.

County leaders say the program responds to a clear and ongoing challenge. Data from the Douglas County Early Childhood Council shows a significant shortage of licensed child care providers, particularly for infants and toddlers. Current capacity meets only about 16.6% of the estimated need for infant care and about 38% for toddlers.

“This is a practical step we can take at the local level to support working families and strengthen our economy,” said Commissioner Abe Laydon. “When parents cannot find reliable child care, it impacts their ability to work and provide for their families. This program is designed to help close that gap.”

Commissioners emphasized that the program is not only about increasing capacity, but also about supporting the long-term stability of existing providers.

“Our child care providers are small businesses that play a critical role in our community,” said Commissioner George Teal. “By easing some of their financial burden, we are helping them retain staff, improve their facilities and continue serving Douglas County families at a high level.”

“The high cost of child care is a major burden for families,” said Commissioner Kevin Van Winkle. “By passing this tax credit, Douglas County is leading the way to provide meaningful relief, reducing costs and strengthening our local economy. This tax cut is about making our county the best place in Colorado to raise a family.”

If approved, applications for the program are expected to open in late spring, with rebates distributed later in the summer. The program will be evaluated annually, with commissioners reviewing participation, changes in child care capacity and overall impact before deciding whether to renew it.

Are you a child care provider interested in learning more? Email Diane Smith at [email protected].