Federal Tax Benefits
Tax Benefits to Support Employee Child Care
On Site Child Care
Beginning in 2026, businesses can receive a federal tax credit equal to 40% of expenses for employee child care. The maximum credit allowed per year is capped at $500,000. (Small businesses are allowed 50% of expenses and the cap is $600,000 annually).
Contracting for Child Care
Beginning in 2026, businesses can contract with a child care program to provide child care for their employees or help make it more affordable. Similar to on-site child care, businesses can receive a tax credit of up to 40% of expenses, with an annual cap set at $500,000. (Small businesses are allowed 50% of expenses and the cap is $600,000 annually).
Help Families Find Child Care
Businesses can receive a 10% tax credit for contracting with Child Care Resource and Referral (CCR&R) agencies, (the local CCR&R is Child Care Resources of Monmouth County), to help families find child care that works within their budget.
Child Care Search Help
Child Care Resources helps parents find child care and supports child care providers in offering high-quality child care. A referral specialist will help parents identify child care options based on family specific needs. Contact Child Care Resources today!