Federal Tax Benefits
Tax Benefits to Support Employee Child Care
On Site Child Care
Contracting for Child Care
Help Families Find Child Care
Beginning in 2026, businesses can receive a federal tax credit equal to 40% of expenses for employee child care. The maximum credit allowed per year is capped at $500,000. (Small businesses are allowed 50% of expenses and the cap is $600,000 annually).
Beginning in 2026, businesses can contract with a child care program to provide child care for their employees or help make it more affordable. Similar to on-site child care, businesses can receive a tax credit of up to 40% of expenses, with an annual cap set at $500,000. (Small businesses are allowed 50% of expenses and the cap is $600,000 annually).
Businesses can receive a 10% tax credit for contracting with Child Care Resource and Referral (CCR&R) agencies to help families find child care that works within their budget. Find your local CCR&R.
Child Care Search Help
Child Care Resource & Referral (CCR&R) agencies help parents find child care and support child care providers in offering high-quality child care. A referral specialist will help parents identify child care options based on family specific needs. Contact your local CCR&R today!