Missouri Child Care Tax Incentives
Current for 2026 Tax Year • Last Updated: January 24, 2026
Federal 45F + Child Care Works (Tri-Share) = 33/33/33 Cost Split!
🚀 Missouri Child Care Works (Tri-Share)
Missouri has launched a groundbreaking pilot program called Child Care Works, based on the successful "Tri-Share" model. This is not a tax credit—it is a direct cost-sharing benefit!
The 2026 Missouri "Stack"
Missouri employers combine the federal Section 45F credit with the Child Care Works (Tri-Share) cost-sharing program for maximum impact.
Claim a tax credit on your 33% employer contribution. Your net cost drops even further!
State pays 33%, Employee pays 33%, You pay 33%. 66% discount for employees!
💰 The "33/33/33" Split
Under Child Care Works, the cost of child care is divided equally among three parties:
- 33% Employer: You contribute one-third of the cost
- 33% Employee: The parent pays one-third
- 33% State: The State of Missouri covers the final third
💡 The Bottom Line: By participating, you can offer your employees a 66% discount on their child care tuition, but it only costs you 33% of the sticker price!
🏛️ How Child Care Works... Works
- Join a Hub: The program is administered by regional hubs (United Way of the Ozarks, MARC in Kansas City)
- Platform Management: Payments and provider selection are managed through tech platforms like TOOTRiS, which automates the billing split
- Eligibility: Targets the "ALICE" population (Asset Limited, Income Constrained, Employed)—families who earn too much for traditional subsidies but struggle to afford market-rate care
🚀 Get Started with Child Care Works
Employers must sign a participation agreement to join the network.
Official Program Site: Child Care Works Missouri →
Find Your Hub: Tri-Share Missouri (TOOTRiS) →
💡 Missouri Strategy Summary
Missouri employers should: (1) Join Child Care Works through their regional hub, (2) Enroll qualifying ALICE employees in the 33/33/33 split, and (3) Claim the federal 45F credit on your employer contribution to reduce net cost even further!
Missouri-Specific Example: The "Child Care Works + 45F" Scenario
A manufacturing firm in the Kansas City area with 150 employees enrolls 10 ALICE employees in Child Care Works.
| Cost Component | Amount | Who Pays |
|---|---|---|
| Total Child Care Cost (10 employees) | $120,000 | — |
| State Share (33%) | $40,000 | Missouri |
| Employee Share (33%) | $40,000 | Employees |
| Employer Share (33%) | $40,000 | You |
| Federal 45F Credit (50% of $40k) | -$20,000 | Tax Refund! |
| Your Net Cost | $20,000 | ~17% of total! |
🏛️ The Show-Me State Advantage
By combining Child Care Works (33% state match) with the federal 45F credit (50% of your share), your net cost drops to just 17% of total child care costs! You provide $120,000 in child care benefits for just $20,000 out of pocket.
Missouri Compliance & Resources
📋 Licensing Requirements
Child care facilities in Missouri must be licensed by the Missouri Department of Health and Senior Services. This ensures that providers meet state health and safety standards.
MO Child Care Licensing →🚀 Child Care Works Hubs
Join through your regional hub: United Way of the Ozarks (Springfield), MARC (Kansas City), and others.
Child Care Works Missouri →📄 Required Federal Form
To claim the federal credit, you must file IRS Form 8882, Credit for Employer-Provided Child Care Facilities and Services, with your business tax return.
IRS Form 8882 →🤝 Local Support
Missouri's Child Care Aware® agencies can help employers find and partner with qualified local child care providers that meet the needs of their employees.
Child Care Aware® of Missouri →Missouri Child Care Landscape
Missouri has a significant population of young children, creating high demand for quality child care.
The high cost of care is a major financial burden for working families across the state.
A majority of Missouri parents report that child care issues have caused them to miss work, impacting productivity.
Major Markets in Missouri
The need for employer-supported child care is critical across Missouri's key economic hubs, including:
- Kansas City
- St. Louis
- Springfield
- Columbia
- Independence
- Lee's Summit
- O'Fallon
- St. Joseph
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.
Missouri Child Care FAQ
Child Care Works is Missouri's Tri-Share pilot program. It's a cost-sharing model where child care costs are split: 33% Employer + 33% Employee + 33% State. This is NOT a tax credit—it's a direct cost-sharing benefit administered through regional hubs.
You must join through a regional hub. Key hubs include United Way of the Ozarks (Springfield area) and MARC (Kansas City area). Payments are often managed through platforms like TOOTRiS. Visit childcareworksmo.org to get started.
The program targets the "ALICE" population (Asset Limited, Income Constrained, Employed)—families who earn too much for traditional subsidies but struggle to afford market-rate care. Employers sign a participation agreement to join the network.
Yes! Your 33% employer contribution is a qualified child care expenditure under Section 45F. A small business can claim a 50% federal credit on this amount, reducing your net cost to just ~17% of total child care costs!
These bills have struggled to pass. Child Care Works is the active, funded program for 2026. While a tax credit would be nice, the Tri-Share model is available NOW and provides immediate cost relief.
Absolutely! The program is expanding across Missouri. United Way of the Ozarks covers the Springfield/Southwest region. Check with your local hub for availability in your area.
Calculate Your Potential Missouri Credit
Use our free calculator to estimate your potential federal tax savings under Section 45F. See how investing in child care can benefit your bottom line.
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