IR-2024-34: IRS Employer-Provided Childcare Tax Credit page helps employers determine eligibility for up to $150,000 business tax credit

IRS Newswire February 7, 2024
News Essentials What's Hot News Releases IRS - The Basics IRS Guidance Media Contacts Facts & Figures Around The Nation e-News Subscriptions The Newsroom Topics Multimedia Center Noticias en Español Radio PSAs Tax Scams The Tax Gap Fact Sheets IRS Tax Tips Armed Forces Latest News Home IRS Resources Contact My Local Office Filing Options Forms & Instructions Frequently Asked Questions News Taxpayer Advocate Where to File IRS Social Media	Issue Number:    IR-2024-34 Inside This Issue IRS Employer-Provided Childcare Tax Credit page helps employers determine eligibility for up to $150,000 business tax credit WASHINGTON — The Internal Revenue Service announced the launch of a new page on IRS.gov explaining the Employer-Provided Childcare Tax Credit, an incentive for businesses to provide child care services to their employees. "This business tax credit helps employers provide their employees with child-care services and facilities," said IRS Commissioner Danny Werfel. "We've heard that some employers may be overlooking this important credit, so the IRS has created a new one-stop shop for information on IRS.gov that provides an easy place to learn more." The information is available at irs.gov/employerchildcare or by searching "employer child care." This tax credit is designed to help employers cover some of the qualified child care facility and resource and referal expenditures associated with providing child care services to their employees. A qualified child care facility is one that meets the requirements of all applicable laws and regulations of the state or local government in which it is located. The credit is limited to $150,000 per year to offset 25% of qualified child care facility expenditures and 10% of qualified child care resource and referral expenditures. Employers should complete Form 8882, Credit for Employer-Provided Child Care Facilities and Services, to claim the credit for qualified child care facility and resource and referral expenditures. The credit is part of the general business credit subject to the carryback and carryforward rule. This means employers may carryback unused credit one year and then carryforward 20 years after the year of the credit. Taxpayers whose only source for the credit is from pass-through entities can report the credit directly on Form 3800, General Business Credit. The Employer-Provided Childcare Tax Credit homepage on irs.gov has more information about claiming the credit, including the requirements for qualified child care expenditures and qualified child care facilities.   Back to Top         Thank you for subscribing to the IRS Newswire, an IRS e-mail service. If you know someone who might want to subscribe to this mailing list, please forward this message to them so they can subscribe. This message was distributed automatically from the mailing list IRS Newswire. Please Do Not Reply To This Message.

---

Update your subscriptions, modify your password or email address, or stop subscriptions at any time on your Subscriber Preferences Page. You will need to use your email address to log in. If you have questions or problems with the subscription service, please contact subscriberhelp.govdelivery.com. This service is provided to you at no charge by the Internal Revenue Service (IRS).

---

This email was sent to business.solutions.ve@gmail.com by: Internal Revenue Service (IRS) · Internal Revenue Service · 1111 Constitution Ave. N.W. · Washington DC 20535