North Carolina Child Care Tax Incentives
Current for 2026 Tax Year • Last Updated: January 24, 2026
NC Tri-Share: The State Pays 33%! Now in All 100 Counties!
🚀 NC Tri-Share: The "33% Solution"
North Carolina has launched a massive cost-sharing program available in all 100 counties, administered by the NC Department of Commerce and Smart Start, and powered by the TOOTRiS technology platform.
The 33/33/33 Split
Employer (You)
Employee (Parent)
State of NC
(via Smart Start)
💡 The Bottom Line
You can offer a "75% Subsidy" (perceived value) for the price of a 33% contribution. The tech platform (TOOTRiS) handles the complex billing split so HR doesn't have to chase checks!
The 2026 North Carolina "Stack"
Combine NC Tri-Share with the Federal 45F credit for maximum savings!
Claim a tax credit for 40% (Large Business) or 50% (Small Business) of your employer portion (the 33%).
The state pays 33% of child care costs directly. Not a tax credit—CASH!
💡 The NC Math: From 100% to ~17%
Old Strategy: Pay 100%, get 40% Federal Credit = 60% net cost.
New Strategy (Tri-Share + 45F): Pay 33% (Tri-Share), get 50% Federal Credit on that = ~17% net cost!
You provide a 100% child care benefit for roughly 17% of the total cost!
🎯 How to Get Started with NC Tri-Share
The program is designed to be easy for employers. Here's how it works:
1️⃣ Contact Smart Start
Reach out to your local Smart Start partnership to express interest in joining NC Tri-Share.
Find Your Local Partnership →2️⃣ Enroll via TOOTRiS
The program is managed via the TOOTRiS platform, which handles the complex billing split automatically.
TOOTRiS Platform →3️⃣ Employees Select Providers
Employees choose from licensed providers in the network. The platform handles payments automatically.
4️⃣ Claim Federal 45F
At tax time, claim the Federal 45F credit on your employer contribution for additional savings!
North Carolina Example: The "Research Triangle" Scenario
A tech firm in Raleigh joins NC Tri-Share for 20 employees. Here's the monthly math:
| Component | Per Employee/Month | 20 Employees/Month | Annual |
|---|---|---|---|
| Total Cost of Care | $1,500 | $30,000 | $360,000 |
| Employee Pays (33%) | $500 | $10,000 | $120,000 |
| State Pays (33%) | $500 | $10,000 | $120,000 |
| Employer Pays (33%) | $500 | $10,000 | $120,000 |
| Federal 45F Credit (50%) | -$250 | -$5,000 | -$60,000 |
| Net Employer Cost | $250 | $5,000 | $60,000 |
🌲 The North Carolina Advantage
The tech firm provides $360,000 worth of child care benefits for a net cost of just $60,000—that's only 17% of the total cost! Employees get a $1,500/month benefit for just $500/month. This is a game-changer for recruitment and retention in the competitive Research Triangle market.
North Carolina Compliance & Resources
✅ NC Tri-Share is NOW ACTIVE in All 100 Counties!
No matter where your business is located in North Carolina, you can participate in NC Tri-Share. Contact your local Smart Start partnership to get started.
🚀 Smart Start (Tri-Share Hub)
The primary administrator of NC Tri-Share. Contact your local Smart Start partnership to enroll.
Smart Start Tri-Share →💻 TOOTRiS Platform
The technology platform that powers NC Tri-Share. Handles billing splits automatically.
TOOTRiS →🏛️ NC DCDEE (Licensing)
The Division of Child Development and Early Education handles child care licensing in NC.
NC Child Care →📄 Required Federal Form
File IRS Form 8882 to claim the federal Section 45F credit on your employer contribution.
IRS Form 8882 →North Carolina Child Care Landscape
NC Tri-Share is statewide!
The state pays 1/3 of child care costs.
After Tri-Share + 45F credit.
Why NC Employers Are Joining Tri-Share
NC Tri-Share is the biggest child care benefit in North Carolina's history. By splitting costs three ways and stacking with the federal 45F credit, employers can provide a premium benefit at a fraction of the cost. The TOOTRiS platform eliminates administrative burden, making it easy for HR teams to manage.
- Research Triangle (Raleigh-Durham-Chapel Hill) – Tech, biotech, education, healthcare
- Charlotte – Finance, banking, manufacturing, healthcare
- Greensboro/Winston-Salem – Manufacturing, healthcare, education
- Asheville – Tourism, healthcare, craft manufacturing
- Wilmington – Film, tourism, healthcare, port logistics
- Fayetteville – Military, healthcare, retail
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.
TOOTRiS (NC Tri-Share Platform)
The official platform for NC Tri-Share. Handles the 33/33/33 billing split automatically. Your employer contribution is 45F-eligible!
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.
North Carolina Child Care Tax Credit FAQ
NC Tri-Share is a cost-sharing program where child care costs are split equally: 33% Employer, 33% Employee, 33% State of NC (via Smart Start). It's now available in all 100 counties and powered by the TOOTRiS platform.
You can claim the Federal 45F credit (40-50%) on your 33% employer contribution. This means your net cost drops to roughly 17-20% of the total child care cost while providing a 100% benefit to employees!
Yes! As of 2025/2026, NC Tri-Share has expanded to all 100 North Carolina counties. Contact your local Smart Start partnership to enroll.
Contact your local Smart Start partnership or visit the Smart Start website. The program is managed via the TOOTRiS platform, which handles the complex billing split automatically.
North Carolina does not have a traditional state tax credit for employer child care. However, NC Tri-Share is even better—it's a direct cash match where the state pays 33% of the cost. This is more valuable than most state tax credits!
Calculate Your Potential NC Savings
Use our free calculator to estimate your potential federal 45F tax savings. Remember: with NC Tri-Share, you're only paying 33% to start!
Calculate Now