New York Child Care Tax Incentives
Current for 2026 Tax Year • Last Updated: January 24, 2026
200% State Match (CT-652) + NYC Credit + $100M CCCP Grants = The Empire State Advantage!
🏆 New York is AGGRESSIVE on Child Care!
New York offers a 200% State Match on federal 45F credits (Form CT-652), plus NYC has its own credit, plus $100M in CCCP construction grants. Stack City + State + Federal for maximum savings!
The 2026 New York "Stack"
New York employers can achieve a "Triple Win" by combining federal Section 45F + state CT-652 (200% match!) + NYC credit.
Claim a tax credit for 40% (Large Business) or 50% (Small Business) of qualified child care expenses, up to $600,000 annually.
200% of federal credit for NY facilities! Capped at $500k/year.
NYC has its own credit for creating new child care seats!
💡 New York Strategy: The "Triple Stack"
Step 1: Apply for CCCP grants ($100M pot) to fund construction. Step 2: Claim Federal 45F on your expenses. Step 3: File Form CT-652 for 200% state match. Step 4 (NYC): Claim the NYC credit for new seats. Result: Net cost near zero!
📋 Form CT-652: The 200% State Match
New York's Child Care Creation and Expansion Tax Credit is one of the most generous in the nation.
How It Works
| Component | Details |
|---|---|
| Credit Rate | 200% of Federal 45F Credit |
| Applies To | Federal credit attributable to NY facilities |
| Annual Cap | $500,000 per taxpayer |
| Form | CT-652 |
🧮 The Math
If a business claims $100,000 federal 45F credit, they can often claim another $200,000 state credit (subject to the $500k cap). Combined with the federal deduction, the net cost of the facility is almost zero!
🗽 NYC Child Care Center Business Income Tax Credit
New York City has its own credit specifically for creating new child care seats.
The NYC Credit (Local Law 2022/2023)
- Purpose: Incentivize the creation of new child care seats in NYC
- Who Qualifies: Businesses that create new child care capacity in the five boroughs
- The Stack: This is in addition to federal 45F and state CT-652!
💡 The "Creation of Seats" Strategy
"Don't just pay for existing spots. If you help a provider add a new infant room (creating 'new seats'), you unlock a specific pot of state and city tax credits that generic subsidies don't get."
💰 Child Care Capital Program (CCCP): $100 Million!
Before you spend a dime of your own capital, apply for a CCCP Grant!
The Fund
- Allocation: $100 million (FY 2026)
- Purpose: Fund the design, construction, and expansion of child care centers
- What's Covered: "Build the walls and buy the cribs"
- Administered by: OCFS (Office of Children and Family Services)
🎯 The Pitch
"The state is handing out $100 million specifically to build the walls and buy the cribs. Apply for the CCCP Grant before you spend your own capital!"
🔬 NY Success Story: Micron Technology (Clay, NY)
The "Green CHIPS" Standard: On-Site Center + Community Network
The Micron Model
- On-Site Facility: Building a world-class child care center at their Clay, NY semiconductor fab
- Community Investment: Funding PEACE, Inc. to train home-based providers in the surrounding community
- The Dual Strategy: On-site center for HQ staff + network of home-based providers for remote/shift workers
💡 The Lesson for NY Employers
"Micron proves you can do both: Build a world-class on-site center for your HQ staff AND fund a network of home-based providers for your remote/shift workers. Use the CCCP grants + 45F + CT-652 to make it affordable!"
New York-Specific Example: The "Triple Stack" Scenario
A tech company in Syracuse builds an on-site center using CCCP grants + Federal 45F + State CT-652.
| Component | Investment/Credit | Amount |
|---|---|---|
| Facility Construction Cost | Initial Investment | $500,000 |
| CCCP Grant | State Grant (Cash!) | -$200,000 |
| Net Facility Cost | After Grant | $300,000 |
| Federal 45F Credit (50%) | Federal Tax Credit | -$150,000 |
| NY State CT-652 (200%) | State Tax Credit | -$300,000 (capped at $500k) |
| Net Cost | After All Credits | -$150,000 (PROFIT!) |
🗽 The New York Advantage
In this example, the company invests $500k in a facility but receives $650k in grants and credits. They actually make money! Even if the math doesn't always work out this favorably, the combination of CCCP grants + 45F + CT-652 makes building child care capacity incredibly affordable in New York.
New York Compliance & Resources
📋 Form CT-652 (200% State Match)
File this form to claim the Child Care Creation and Expansion Tax Credit—200% of your federal 45F credit!
NY Tax Forms →💰 CCCP Grants ($100M)
Apply for the Child Care Capital Program grants for construction and expansion.
OCFS Child Care →📋 OCFS Licensing
All child care providers must be licensed by the Office of Children and Family Services (OCFS).
OCFS Licensing →New York Child Care Landscape
Form CT-652 doubles your federal credit!
For construction and expansion.
Per taxpayer per year.
Why NY Employers Are Investing in Child Care
New York's aggressive tax incentives make child care investment incredibly attractive. The 200% state match (CT-652) combined with CCCP grants and federal 45F means employers can often build facilities at near-zero or even negative net cost. The Micron model shows how to serve both HQ staff and remote/shift workers.
- New York City – Finance, tech, media, healthcare (+ NYC credit!)
- Syracuse/Clay – Semiconductors (Micron!), education, healthcare
- Albany – Government, tech, healthcare, education
- Buffalo – Manufacturing, healthcare, education
- Rochester – Optics, healthcare, education
- Long Island – Defense, biotech, 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.
Child Care Marketplace Platforms
Technology platforms that connect employees with vetted, licensed child care providers. Subscription fees and network access qualify under 45F.
Benefits Administration Services
Third-party administrators that manage employer child care benefits, including enrollment, provider payments, and compliance reporting.
Resource & Referral Agencies
Community-based organizations that help employees find quality child care. Contracts with R&R agencies qualify for the 10% referral credit.
Child Care Subsidy Programs
Employer-funded subsidy programs that offset employee child care costs. Direct subsidies are fully eligible for the 40-50% credit.
New York Child Care Tax Credit FAQ
New York's Child Care Creation and Expansion Tax Credit (Form CT-652) provides 200% of the federal 45F credit attributable to NY facilities, capped at $500,000 per year. If you claim $100k federal, you can often claim another $200k state!
Yes! New York City has its own Child Care Center Business Income Tax Credit (Local Law 2022/2023) specifically for creating new child care seats. This stacks with federal and state credits for a triple benefit.
The CCCP has been allocated $100 million (FY 2026) to fund the design, construction, and expansion of child care centers. Before you spend a dime of your own capital, apply for a CCCP Grant!
As part of the "Green CHIPS" deal, Micron Technology is building an on-site facility in Clay, NY AND funding PEACE, Inc. to train home-based providers in the surrounding community. They're doing both: world-class on-site center + community network.
In some scenarios, yes! When you combine CCCP grants (cash) + Federal 45F (50%) + State CT-652 (200%), the total credits and grants can exceed your investment. Even if you don't "profit," the net cost is often near zero.
Calculate Your Potential New York Credit
Use our free calculator to estimate your potential federal + state tax savings. Remember: NY offers a 200% state match!
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