IRS Promotes Business Tax Credits for Assisting Employees’ Childcare Needs

Businesses can claim up to 25 percent of expenses related to childcare facility services offered to employees as a tax credit.

A sign outside the Internal Revenue Service building in Washington on May 4, 2021. Patrick Semansky/AP Photo

The Internal Revenue Service (IRS) has set up an online resource on Employer-Provided Childcare Tax Credit, a program incentivizing businesses to provide childcare services to their employees.

On Wednesday, the IRS launched a new page detailing information regarding the credit. “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,” said IRS Commissioner Danny Werfel, according to a Feb. 7 press release.