Enhanced Employer Child Care Tax Credit Offers Major Incentives for 2025 and 2026！

Employers seeking ways to attract and retain top talent may want to consider providing child care services to staff. A significantly enhanced tax credit can make this more feasible. For 2025, the maximum credit is $150,000. For 2026, it will increase to $500,000 ($600,000 for eligible small businesses). The 2026 credit will equal 40% of the employer’s eligible child care expenses (up from 25% in 2025), or 50% for eligible small businesses. Qualifying expenses include the purchase, construction, expansion or rehabilitation of a child care facility and related operating expenses. Employers may contract with a qualified child care facility to provide such services. Contact us with questions.