West Virginia Child Care Tax Incentives
Current for 2026 Tax Year • Last Updated: January 24, 2026
50% State Tax Credit (HB 226) + Tri-Share + Federal 45F = Nearly FREE Child Care!
The 2026 West Virginia Stack: Up to 100% Recovery!
🎉 West Virginia is NO LONGER "Federal Only"!
HB 226 created a 50% State Tax Credit for employer-provided child care. Combined with Federal 45F, you can recover nearly 100% of your investment!
Claim 40% (Large) or 50% (Small Business) of qualified child care expenses.
50% of qualified expenses for construction, operation, and payments for child care slots.
| Credit Layer | Rate | On $100k Investment |
|---|---|---|
| Federal Section 45F (Small Biz) | 50% | $50,000 |
| WV State Credit (HB 226) | 50% | $50,000 |
| Total Recovery | 100% | $100,000 |
⚠️ Important: Check the Stacking Rules
Consult with your CPA on the exact interaction between the state and federal credits. Even with adjustments, the combined benefit is exceptional!
🚀 West Virginia Tri-Share: The "33% Solution"
Cost-sharing pilot modeled after the successful Michigan program!
The 33/33/33 Split
💡 The Ultimate Stack: Tri-Share + HB 226 + 45F
Don't pay 100%. Pay 33% via Tri-Share, then claim the Federal 45F Credit AND the WV State Tax Credit on your portion!
Example: $1,500/month care → You pay $500 → Claim ~$450 in credits → Net cost: ~$50/month!
📋 Get Started with Tri-Share
The program is administered by the West Virginia Department of Human Services.
🏥 WV Success Story: WVU Medicine (Morgantown)
West Virginia's largest employer shows how to compete for talent.
The WVU Medicine Model
- The Challenge: Recruiting doctors and nurses to Morgantown requires world-class benefits
- The Solution: Built the Child Development Center on campus
- The Quality: Rivals any university hospital child care center in the country
- The Result: A key recruiting tool that helps WVU Medicine compete with major metro hospitals
💡 The Lesson for West Virginia Employers
"WVU Medicine realized they couldn't recruit doctors to Morgantown without world-class care. They built an on-site center that rivals any university hospital in the country. You can use the HB 226 Credit (50%) + Federal 45F to offset the cost of building your own."
🏗️ Don't Want to Build? Use Tri-Share!
Not every employer can build a center like WVU Medicine. That's why Tri-Share exists—get the same recruiting advantage by subsidizing existing care, not building new infrastructure.
West Virginia-Specific Example: The Full Stack
A Charleston employer uses Tri-Share + HB 226 + Federal 45F for maximum savings.
| Component | Amount | Notes |
|---|---|---|
| Total Child Care Cost (10 employees) | $150,000/year | $15k/employee average |
| Employee Share (Tri-Share 33%) | -$50,000 | Employees pay their third |
| State Share (Tri-Share 33%) | -$50,000 | WV pays their third |
| Employer Share (Tri-Share 33%) | $50,000 | Your starting cost |
| Federal 45F Credit (50%) | -$25,000 | On your $50k share |
| WV State Credit HB 226 (50%) | -$25,000 | On your $50k share |
| Your Net Cost | $0 | FREE child care benefit! |
💰 The West Virginia Advantage
Total Care Value: $150,000 | Your Net Cost: $0
West Virginia's stack is one of the most generous in the nation. You can offer a $15,000/year benefit for essentially FREE!
West Virginia Compliance & Resources
📋 Child Care Licensing (DoHS)
All facilities must be licensed by the Department of Human Services (DoHS). Note: Recently reorganized from DHHR.
DoHS Child Care →💰 HB 226 State Credit
File for the 50% State Tax Credit on your West Virginia business tax return.
WV State Tax →West Virginia Child Care Landscape
Key West Virginia Markets
Employers in these markets are leveraging HB 226 and Tri-Share:
- Charleston – State capital, healthcare, government, banking
- Morgantown – WVU, healthcare, tech startups
- Huntington – Healthcare, manufacturing, Marshall University
- Wheeling – Healthcare, energy, manufacturing
- Parkersburg – Chemical manufacturing, healthcare
- Martinsburg – Eastern Panhandle growth, DC commuters
West Virginia Section 45F FAQ
Ready to Claim Your West Virginia Child Care Credits?
Use our calculator to estimate your Federal 45F + WV State Credit savings!