Florida Child Care Tax Incentives
Current for 2026 Tax Year • Last Updated: January 24, 2026
Florida's powerful new state credits create a massive stacking opportunity for employers.
The 2026 Florida "Stack"
Florida employers can achieve significant savings by combining the expanded federal Section 45F credit with the state's new child care tax credit initiative (HB 7073, effective Jan 1, 2024).
⚠️ Critical: Entity Type Check
These credits apply to Florida Corporate Income Tax. If you are an S-Corp, LLC, or sole proprietorship without corporate tax liability, you may have $0 usable credit—even if you qualify on paper. Florida has no personal income tax. Verify with your CPA if you can apply these credits against other tax obligations (like sales tax) before investing.
Claim a tax credit for 40% (Large Business) or 50% (Small Business) of qualified child care expenses, up to $600,000 annually.
Multi-faceted credit: 50% of startup costs, $300/month per child, and 100% of direct payments to employees.
📊 The Three Florida Credits (s. 220.19, F.S.)
- Startup Credit: 50% of costs to establish a new child care facility (up to $1M)
- Operation Credit: $300/month per child enrolled in a qualified program
- Payment Credit: 100% of direct payments to employees for child care (up to $3,600/child/year)
⏳ First-Come, First-Served Application Window
Like Alabama, Florida's credits have an annual aggregate cap. You must apply to the Department of Revenue for an allocation. If the cap is reached (often early in the fiscal year), you get nothing—even if you spent the money. Apply early!
🚫 No "Double Dipping" on Deductions
You cannot claim a 100% state credit for a payment AND deduct that same payment as a business expense on your federal return without an adjustment. The "Triple Win" math assumes no overlap—work with your CPA to optimize.
💡 Florida Strategy (For C-Corps)
Florida's HB 7073 is one of the most aggressive in the nation—but only for C-Corporations or entities with significant Corporate Income Tax liability. The 100% credit for direct employee payments is a game-changer, but strictly limited by the state's aggregate cap. Apply early and verify your entity type qualifies.
Florida-Specific Example: The "Hospitality Leader" Scenario
A hotel group in Orlando with 800 employees across several locations decides to build a small, on-site child care center for its employees' children.
| Expense Category | Annual Investment | Federal 45F Credit (40%) | Florida State Credit |
|---|---|---|---|
| On-Site Center Startup Costs | $500,000 | $200,000 | $250,000 (50%) |
| Annual Operating Costs | $250,000 | $100,000 | $0 |
| Total | $750,000 | $300,000 | $250,000 |
☀️ The Florida Advantage
The combined federal and state credits cover $550,000 of the $750,000 total investment. The hotel group can also claim a $300/month credit for each child enrolled in the center, further reducing their tax liability and making the child care benefit a powerful tool for attracting and retaining staff in Florida's competitive hospitality market.
Florida Compliance & Resources
📋 Licensing Requirements
All child care facilities must be licensed by the Florida Department of Children and Families (DCF). This ensures providers meet state health and safety standards.
FL Dept. of Children and Families →💰 Florida Child Care Initiative
The new initiative is a key part of Florida's strategy to support working families. Details are managed by the DCF and the Florida Department of Revenue.
Florida Child Care Initiative Details →📄 Required Federal Form
File IRS Form 8882 with your federal business tax return to claim the Section 45F credit. Consult with a tax professional for guidance on how to claim both federal and Florida state credits.
IRS Form 8882 →🤝 Local Support
Florida's Early Learning Coalitions provide local resources and support for employers looking to offer child care benefits. They can help identify licensed providers and navigate state programs.
Early Learning Coalitions of Florida →Florida Child Care Landscape
Why Florida Employers Are Investing in Child Care
With a booming economy and a tight labor market, Florida businesses are using child care benefits as a strategic advantage. The state's new, generous tax credits, combined with the powerful federal 45F credit, make the ROI on child care investments higher than ever.
Employers in these major Florida metros are leading the way in child care benefits:
- Miami-Dade County – Tourism, finance, and international trade
- Orlando (Orange County) – Hospitality, tourism, and technology
- Tampa Bay Area (Hillsborough/Pinellas) – Healthcare, finance, and professional services
- Jacksonville (Duval County) – Logistics, healthcare, and manufacturing
- Fort Lauderdale (Broward County) – Marine industry, tourism, and business services
- Southwest Florida (Lee/Collier) – Real estate, tourism, and healthcare
- Tallahassee (Leon County) – Government, education, and healthcare
Qualified Intermediary Platforms for 45F
Under the One Big Beautiful Bill Act (OBBBA) 2026 updates, employers can now claim Section 45F credits for expenses paid to qualified intermediary service providers. These platforms help connect employees with licensed child care and manage benefits administration.
Child Care Marketplace Platforms
Technology platforms that connect employees with vetted, licensed child care providers. Expenses for subscription fees, matching services, and provider network access qualify under 45F.
Benefits Administration Services
Third-party administrators that manage employer child care benefits, including enrollment, provider payments, and compliance reporting. Administrative fees are now 45F-eligible.
Resource & Referral Agencies
Community-based organizations that help employees find quality child care. Contracts with R&R agencies qualify for the 10% referral credit component.
Child Care Subsidy Programs
Employer-funded subsidy programs that offset employee child care costs. Direct subsidies to employees for licensed care are fully eligible for the 40-50% credit.
Florida Section 45F FAQ
Ready to Calculate Your Florida Savings?
Use our calculator to estimate your federal Section 45F credit. Select "Florida" in the state dropdown to see how the powerful state incentives can stack for maximum savings.