Federal Tax Benefits
Federal Tax Benefits to Support Employee Child Care
On Site Child Care
Contracting for Child Care
Help Families Find Child Care
Beginning in 2026, businesses can receive a federal tax credit equal to 40% of expenses for employee child care. The maximum credit allowed per year is capped at $500,000. (Small businesses are allowed 50% of expenses and the cap is $600,000 annually).
Beginning in 2026, businesses can contract with a child care program to provide child care for their employees or help make it more affordable. Similar to on-site child care, businesses can receive a tax credit of up to 40% of expenses, with an annual cap set at $500,000. (Small businesses are allowed 50% of expenses and the cap is $600,000 annually).
Businesses can receive a 10% tax credit for contracting with Child Care Resource and Referral agencies. In Idaho, contact your IdahoSTARS regional Child Care Resource Center to help families find child care that works within their budget.
Child Care Search Help
IdahoSTARS provides a fully coordinated statewide Child Care Resource Center (CCRC) network, with 7 regional offices, to help parents and to support child care providers. Parents can speak to a child care specialist directly and receive a list of child care providers meeting family priorities for care. Let parents know to call 2-1-1 to get in touch with a local Resource Specialist who can help.