As part of the recently passed Big Beautiful Bill Act, Congress expanded the Employer-Provided Childcare Credit (Section 45F). Effective January 1, 2026, the credit will apply to 40% of qualifying childcare expenditures (previously 25%), and the maximum credit will increase to $500,000 (previously $150,000).
Some examples of expenditures that may apply to this credit include:
These employer-funded expenditures are meant to improve the overall experience and offer direct support for childcare to your employees.
