Employer-provided childcare credit

Who is eligible?

You are entitled to this refundable credit if you or your business is allowed the federal credit for employer-provided childcare facilities and services for;

• qualified expenditures of a qualified childcare facility located in New York State, or
• qualified childcare resource and referral expenses for employees working in New York State.

How much is the credit?

The credit is 200% of the amount allowed under Internal Revenue Code Section 45F for tax years beginning on or after January 1, 2022. Currently, the credit allowed for New York State is 50% of the qualified childcare facility expenditures plus 20% of the childcare resource and referral expenditures paid or incurred during the tax year.

The credit is limited to $500,000 per tax year and is applied at the entity level.

 Additional information

• Form CT-652, Employer-Provided Childcare Credit, and its instructions (for corporations)
• Form IT-652, Employer-Provided Childcare Credit, and its instructions (for all others)

To learn about other New York State tax credits available to businesses, see Business incentives.