2026 Tax Guidelines
§45F Employer-Provided Childcare Tax Credit
The §45F tax credit provides employers with valuable incentives for providing childcare services to their employees. For the 2026 tax year, eligible employers can claim:
- 25% of qualified childcare facility expenditures
- 10% of qualified childcare resource and referral expenditures
- Maximum annual credit of $150,000 per employer
Key Requirements for 2026
Qualified Childcare Facilities
- Must be licensed and regulated by state/local government
- Located on employer's business premises or contracted nearby
- At least 30% of enrollment must be dependents of employees
- Facility must operate during normal working hours
Eligible Expenditures
- Acquisition, construction, and rehabilitation costs
- Operating costs (staffing, supplies, equipment)
- Resource and referral services
- Contracts with qualified childcare facilities
Recapture Rules
Employers must maintain the qualified childcare facility for at least 10 years. If discontinued before the 10-year period, a portion of the credit may be subject to recapture.
Documentation Requirements
To claim the credit, employers must maintain:
- State or local licensing documentation
- Detailed records of all qualified expenditures
- Employee enrollment records
- Facility operational logs and attendance records
- Contracts with childcare providers (if applicable)
Important Deadlines for 2026
- April 15, 2026: Corporate tax return deadline (or extended deadline if applicable)
- March 15, 2026: S-Corporation and partnership tax return deadline
- Ongoing: Maintain 10-year operational requirement for recapture avoidance
Need Help?
Our team of experts can guide you through the entire process of claiming the §45F tax credit. We offer comprehensive services including eligibility assessment, documentation preparation, and ongoing compliance support.