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.
- 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.