Child care tax credits are designed to incentivize employers to provide child care directly, contract within their community for child care for their employees or help either expand the supply of child care or make it more affordable for their employees. Additional tax credits may be available to employers and employees through the state and Federal government. 

Employer-Provided Child Care Tax Credit (45F)

Section 45F is a federal tax credit that encourages businesses to support employee access to child care. Employers can qualify for a nonrefundable tax credit of up to $500,000 (up to $600,000 for small businesses) by providing or sponsoring child-care services for their employees. Eligible costs include operating a near- or on-site child care facility, contracting with licensed child care providers or supporting services that help employees find care. The credit is designed to support employer investments in child care while improving workforce stability, productivity and employee retention by helping families balance work and caregiving responsibilities.

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Note: Consult with your tax advisor check to make sure your organization qualifies, maintains the right records and aligns with upcoming IRS rules.