What is the Employer-provided childcare credit?
The employer-provided childcare credit is a federal tax credit that allows businesses to claim 40% of qualified childcare expenses, or 50% for eligible small businesses, with annual maximums of $500,000 to $600,000. Enhanced under the One Big Beautiful Bill Act starting in 2026, the credit applies to facility construction, operating costs, external partnerships, and employee childcare scholarships. Strategic coordination with Employee achievement awards creates comprehensive workplace family support programs while maximizing available business tax benefits.
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