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Companies have long been utilizing tax credits for R&D, clean energy and hiring that are substantial enough to influence corporate decision-making. Child care, however, was never in that category.
The Employer-Provided Child Care Tax Credit (Section 45F) has historically been too overlooked and too narrowly structured to make a meaningful dent in costs. Only about 18 million was claimed each year, representing just 0.03% of eligible filers.
Jessica Chang is CEO and Co-Founder of Upwards (formerly WeeCare), a nationwide child care network and child care benefits platform for U.S. employers.
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