Florida’s Child Care Tax Credit is a game-changer for businesses and working parents. Launched in October 2024, this tax credit helps employers support their employees’ childcare needs while saving on taxes. It’s a great way to attract and retain talent, ensuring parents can stay in the workforce and ease up on the burden of high childcare costs.
How the Tax Credit Works
Businesses can qualify for tax credits in the following ways:
Direct Childcare Payments – Employers who subsidize their employees’ childcare costs at licensed providers can receive a 100% tax credit, up to $3,600 per child or grandchild annually.
Startup Costs for Childcare Facilities – Businesses that create their own childcare facility can claim up to 50% of their startup costs as a tax credit.
Credit Limits Based on Business Size
Small businesses (1-19 employees) – Up to $50,000 in credits.
Medium businesses (20-250 employees) – Up to $500,000 in credits.
Large businesses (250+ employees) – Up to $1 million in credits.
Which Taxes Does It Apply To?
The tax credit can be used against:
Corporate Income Tax
Insurance Premium Tax
Severance Tax on Oil & Gas Production
Beverage Tax
Direct Pay Sales Tax
How to Get Started
Employers can now apply for the tax credit. Here’s what businesses should do:
Consult a Tax Professional – Understand how the credit applies to your business.
Assess Employee Needs – Conduct a simple survey to see if childcare assistance would benefit your workforce.
Partner with Childcare Providers – Work with local early learning coalitions or childcare centers to set up a plan.
Why This Matters
Childcare challenges are a major reason employees leave the workforce. By taking advantage of Florida’s Child Care Tax Credit, businesses can improve employee retention, support working families, and gain valuable tax savings.
Want to learn more? Contact Early Learning Coalition of Sarasota at (941) 954-4830 or visit the Florida Department of Revenue’s website for application details.
