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Child care creation and expansion credit 

The Child care creation and expansion credit was available for tax years 2023 and 2024. 

Who is eligible?

You are entitled to claim this refundable tax credit if you meet the following requirements for the tax year in which you are claiming the credit:

  • 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).

For more information about the program, visit the OCFS website.

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

Updated: