Child care creation and expansion credit 

Who is eligible?

You are entitled to claim this refundable tax credit if you:

• are subject to tax under Tax Law Article 9-A, 22, or 33; and
• have received a certificate of tax credit or a share of the credit listed on a certificate issued by the Office of Children and Family Services (OCFS).

To apply for a certificate of tax credit, you must submit a complete application to OCFS by January 31 after the service year. For more information about the program and the application process, visit the OCFS website at ocfs.ny.gov/main/.

How much is the credit?

The credit is limited to 25 infant and toddler child care seats per tax year.

The credit is equal to the sum of:

• the product of the number of infant child care seats that have been created or expanded and 20% (0.2) of the child care rate for such infant child care seats; and
• the product of the number of toddler child care seats that have been created or expanded and 20% (0.2) of the child care rate for such toddler child care seats.

Note: Pursuant to the Social Services Law § 394-e, the credit amount may be reduced according to the amount of available funds.

How do I claim the credit?

• The tax credit can be claimed in the taxable year that includes the last day of the service year for which the credit is calculated. You can find the service year on the certificate of tax credit issued by OCFS.

• Claim the amount of credit listed on the certificate of tax credit by completing Form IT-662 or CT-662, Child Care Creation and Expansion Credit, as applicable, and filing it with your tax return. 

Additional information

• Form CT-662, Child Care Creation and Expansion Credit, and its instructions (for corporations)
• Form IT-662, Child Care Creation and Expansion Credit, and its instructions (for all others)