Douglas County approves tax rebates to boost child care capacity

Douglas County commissioners approved a one-year tax rebate for licensed child care providers that county leaders say is aimed at turning a severe infant-care shortage into more open slots for working families.

The board approved the program on April 14, and Douglas County announced it publicly on April 17. Under the policy, eligible providers can receive a rebate equal to 75% of the county portion of their real and personal property taxes. Providers that care for infants and toddlers may qualify for an additional 25% incentive, a nod to the age groups that are hardest to place and most expensive to serve.

County officials say the problem is not abstract. Data from the Douglas County Early Childhood Council show local capacity meets only about 16.6% of estimated infant-care need and about 38% of toddler-care need. The county’s resolution says that shortage affects workforce participation, economic development and quality of life across Douglas County.

The new incentive is meant to ease pressure on the child care businesses and nonprofits that actually operate the slots parents rely on. County leaders said the rebate can help providers retain staff, improve facilities and keep serving families. Commission Chair Abe Laydon framed the measure as support for working families and the local economy, while Commissioner George Teal pointed to child care providers as small businesses that play a critical role in the community.

The program is being launched as a one-year pilot, with applications expected to open later this spring. To qualify, providers must be licensed, remain in good standing and commit to using the funds for approved expenses such as staff retention, facility improvements or educational materials. County staff said the policy was built through a cross-departmental effort involving the Early Childhood Council, the assessor’s office, county administration, community services and planning services.

Douglas County’s move also puts it at the center of a new policy shift in Colorado. Senate Bill 24-002, signed into law on March 15, 2024, gave counties and municipalities new authority to create property tax rebate and credit programs for uses deemed an area of specific local concern. Douglas County is now the second Colorado county to adopt a child care property tax rebate under that law, after Adams County moved first earlier this month.