- Key insight: The reason benefit leaders should re-evaluate the 45F tax credit for 2026 and beyond.
- Supporting data: 46% of children living in a specific type of underserved region.
- Forward look: Enhanced federal childcare credit can sometimes be stacked with state and other options to create more options for employers.
Source: Bullets generated by AI with editorial review
- An increase of allowed credit for any taxable year from $150,000 to $500,000 ($600,000 for eligible small businesses) and adjusting such amounts for inflation after 2026;
- An increase of the percentage of qualified childcare expenditures that are used to determine the credit from 25% to 40% (50% for eligible small businesses);
- Addressing joint ownership or operation of a qualified childcare facility.
