Employer Sponsored Child Care
Explore guidance and tools for employers and employees, or visit the provider resource hub. Choose the path that fits you.
Employer
Explore tax credit opportunities and practical steps for supporting your workforce with child care.
Parent / Employee
Understand how employer-supported child care can work, whether your provider may qualify, and how to start the conversation at work.
How can business owners help their workforce access care?
Through Federal and State tax credits for child care, your business has options that benefit both your employees and your bottom line be reimbursed for a percentage of costs when you support your employees’ child care needs.
Federal Credits
The Employer-Provided Child Care Credit (IRC §45F) is a federal tax credit that allows businesses to claim a substantial tax savings when they invest in child care for their workforce. As of January 1, 2026, the credit rates rose to 40% (50% for small businesses), annual caps more than tripled.
Save money while supporting your working families
Reliable child care isn't just a family issue, it's a business issue. When employees don't have dependable child care, businesses experience:
Increased absences
Higher turnover
Supporting employees with child care doesn't have to mean building an on-site child care center. Businesses of all sizes, but especially for small and mid-sized businesses, have options that can make a meaningful difference for working families.
Thanks to expanded federal and Georgia tax credits, employers can recover a significant portion of the costs associated with providing child care benefits and resources helping both your employees and bottom line.
Hiring challenges
Lost productivity
Eligibility criteria
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The Employer-Provided Child Care Credit (IRC §45F) is a federal tax credit that allows businesses to offset the cost of child care benefits for employees and claim a substantial tax savings.
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As of January 1, 2026, the expanded credit provides even greater incentives:
Businesses may receive a tax credit for up to 40% of qualified child care expenditures.
Eligible small businesses may qualify for a credit of up to 50% of qualified expenses.
Annual credit limits have more than tripled, making child care investments more affordable than ever.
Eligible expenses include child care assistance, partnerships with licensed providers, and child care resource and referral services.
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Georgia offers employers tax incentives that can help reduce the cost of supporting employees with child care. These credits can complement the expanded federal Employer-Provided Child Care Credit, allowing businesses to maximize their investment in working families.
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Employers may qualify for tax credits when they:
Purchase qualified child care property to create or improve child care facilities. Employers may receive a state tax credit equal to 100% of the cost of qualified child care property.
Provide or sponsor child care for employees. Georgia offers a tax credit of up to 75% of an employer's direct costs for providing or sponsoring child care benefits.
Help pay employees' child care expenses. Beginning with tax year 2026, employers may qualify for the Georgia Employer Childcare Expense Credit when they contribute at least $1,000 annually toward an employee's child care costs. The credit is generally $500 per child, increasing to $1,000 per child in the program's first year.
See Your Potential Savings
Wondering how much your business could save by utilizing the 45F Tax Credit?
Try our Employer-Provided Child Care Tax Credit Calculator to see an estimate of the federal child care tax credits your business may qualify for based on your planned child care investments.
Download the Employer Toolkit
Ready to explore your options? In partnership with the Cobb Community Foundation, our free Employer Toolkit to learn:
More about the new expanded federal tax credit
How the expanded tax credits work
Types of child care benefits employers can offer
Steps for getting started
Resources to help support your workforce
Learn from experts! Watch our free webinar to better understand the expanded Employer-Provided Child Care Tax Credit. We explain:
What's changed under the expanded 45F tax credit
Which businesses qualify
Examples of eligible expenses
How the Georgia Tax Credit complements the federal credit
Getting started
This resource was developed with funding provided by the Cobb Community Foundation.
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