Business Owners: Claim Up to $150,000 Childcare Tax Credit

What Is the Credit?

The Employer-Provided Childcare Tax Credit allows businesses to claim:

• 25% of qualified expenses for providing or maintaining a childcare facility
• 10% of costs for childcare resource and referral services

Combined, the credit can be worth up to $150,000 annually.

What Costs Count?

To qualify, your business must have paid for one or more of the following:

• Building, buying, or improving a childcare facility that complies with state and local regulations
• Operating costs like staffing, training, or scholarship programs for childcare workers
• Referral services to help employees find reliable childcare

Your business must incur these expenses specifically to help provide childcare to your employees.

Who Can Claim It?

Any employer who covers qualified childcare expenses can claim the credit. This includes large companies, small businesses, and even those working with outside childcare providers through a contract.

How to Claim the Credit

•  Use IRS Form 8882 – Credit for Employer-Provided Childcare Facilities and Services – when you file your business taxes
•  The credit is part of the general business credit, meaning unused portions can be carried back one year or carried forward up to 20 years
•  If your credit is from a pass-through entity, report it directly on Form 3800 – General Business Credit

Why This Matters

Offering childcare benefits can help attract and retain employees, boost productivity, and now—help your bottom line with a generous tax credit. If you’re already providing these services or considering it, don’t leave money on the table.

Talk to your tax professional to see how your business can benefit. Or contact Optimum Business Services  at 773-257-0911 for more information