Employer Tax Savings

Tax Benefits to Support Employee Child Care

On Site Child Care

Businesses can receive a federal tax credit equal to 25% of expenses for employee child care. The maximum credit allowed per year is capped at $150,000.

Contracting for Child Care

Businesses can contract with a child care program to provide child care for their employees or help make it more affordable. As with on-site child care, businesses can receive a tax credit equal to 25% of expenses capped annually at $150,000.

Help Families Find Child Care

Businesses can receive a 10% tax credit for contracting with Child Care Resource and Referral Agencies (e.g., NJ’s CCR&Rs serve every county) to help families find child care that works within their budget.

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