Section 45F Child Care Tax Credit by State

Massive new 100% tax credit (capped at $600k) for employers who open on-site centers or stipend employees. Effective Jan 2025.

Federal 45F is the primary tax lever. State offers robust Child Care Grant Program (CCGP) for non-profits and coalitions.

Utilize the Empowerment Scholarship Account (ESA) for Pre-K expenses + Federal 45F for wrap-around care.

Early Childhood Education Credit: 3.9% of payroll OR 30% of direct costs for operating an on-site facility.

No direct 45F copy, but child care investments can be used to negotiate 'California Competes' tax credits with GO-Biz.

The Gold Standard. A 50% refundable contribution credit (up to $100k) that stacks with Federal 45F for a near-zero cost basis.

Human Capital Investment Credit: 25% credit for child care subsidies and facility construction.

New 50% employer credit (capped at $100k) for securing slots or operating a facility. Stacks perfectly with 45F.

OSSE Capital Quality Grants available for facility expansion. Federal 45F applies to local DC tax liability.

New Child Care Tax Credit (HB 7073): 50% of startup costs and annual payments for employee child care.

HB 1010 expanded the credit to 100% of qualified costs (up to $1M/year) for operating or building facilities.

Stack Federal 45F with 'Preschool Open Doors' subsidies to cover nearly 100% of costs for eligible employees.

Workforce Development Council offers Child Care Expansion Grants ($15k/seat) to build capacity.

30% credit for startup costs + 5% of annual operating expenses for on-site facilities.

Employer Child Care Expenditure Credit: 50% of costs to build or operate a center (capped at $100k).

Employer Child Care Tax Credit: 25% of qualified expenditures, matching the Federal 45F definitions.

Day Care Facilities Credit: 30% for purchasing care, 50% for establishing a facility (Refundable).

ECCAP Program: State matches employer child care contributions 100% (Dollar-for-Dollar). Best in class.

School Readiness Tax Credit: Up to $50,000 refundable credit for businesses based on the 'Star Rating' of the center.

Child Care Infrastructure Grant Program offers substantial funding for new construction. Stacks with Federal 45F.

Employer Child Care Tax Credit: 30% of start-up costs (up to $150k) for on-site centers.

Commonwealth C3 Grants provide monthly operational funding. Employers should partner with C3-eligible centers.

Tri-Share: Costs split 33% Employer, 33% Employee, 33% State. Massive ROI for businesses.

DEED Child Care Economic Development Grants provide up to $300k for community/employer projects.

Employer Tax Credit: 50% of qualified expenses for providing dependent care. 5-year carryforward.

Child Care Contribution Tax Credit: 30% credit for contributions to providers or purchasing slots.

30% credit for dependent care assistance + Best Beginnings Scholarship stacking.

Massive new non-refundable credit: 50-75% of costs for establishing or operating a center.

No income tax. Focus on 'Silver State' Opportunity Grants for construction and expansion.

Granite Steps for Quality provides state matching funds. No state income tax = Federal 45F focus.

Child Care Facilities Improvement Program: Grants covering 100% of renovation costs (up to $200k).

Child Care Facility Credit: 30% of operating costs for on-site or contracted care.

New 'Child Care Creation & Expansion Credit' offers significantly higher caps than the legacy Empire credit.

New 'Tri-Share' pilot in all 100 counties. Employer pays 33%, State pays 33%, Employee pays 33%.

Working Parents Child Care Relief: State matches employer contributions. Plus 50% Tax Credit.

Cost-Sharing Program: Employer pays 40%, Employee pays 40%, State pays 20%.

New 30% credit (HB 4147) for reserving slots or providing stipends (capped at $30k/year).

Employer Child Care Credit: 50% of costs (up to $100k) for community-facing or on-site centers.

Educational Improvement Tax Credit: 90% to 100% tax credit for contributing to Pre-K Scholarship Organizations.

30% credit (up to $30k) for purchasing services or building on-site care.

50% Startup/Operating Credit ($3k cap) + New Tri-Share Pilot (33/33/33 Split) pending launch.

No income tax. Employers should partner with EDCs to access 'Community Based Child Care Grants'.

DHS Establishment Grant pays up to $1,000 per new slot created. Stacks with Federal 45F.

Prop 2 (SB 1145) allows 100% Property Tax Exemption for centers. Plus local Tri-Share pilots.

Private Sector Innovation (ALPLA Model) + Office of Economic Opportunity grants.

Employers pay 0.44% Payroll Tax. Strategy: Maximize employee enrollment in state-funded CCFAP subsidy.

EISTC Credit: 65% state tax credit for donating to Pre-K scholarships. (Old 'Enterprise Zone' credit is dormant).

Child Care Partnership Grants available from Dept of Commerce. B&O Tax Credit pending legislation.

New 50% Employer Tax Credit (HB 226) + Active Tri-Share Pilot (33/33/33 Split).

Project Growth 'Partner Up!' grants cover up to 75% of slot costs. Federal 45F for the rest.

No income tax. Utilize Workforce Development Training Funds to upskill staff into child care roles.

Federal 45F for US filers only. Local strategy: ACUDEN ContiGO vouchers for employees.

File Form 8882 with Guam Dept of Revenue. Credit applies to local Guam tax liability.

File Form 8882 with VI Bureau of Internal Revenue. Check EDC tax exemption status first.

File with American Samoa Tax Office. US Federal Forms do not apply to local corporations.

File with CNMI Revenue & Taxation. Warning: Credit may be limited by generous local Tax Rebates.