Episode 7: Childcare Tax Credit Programs - A Deep Dive with Greg and Doug

Welcome back to the newly renamed Childcare Tax Break Breakdown, where we dissect the latest in childcare tax credits and benefits that employers can leverage. In this episode, we've covered a lot of ground, from state care policies to innovative employer strategies.

State Care Policy Report Cards

We kicked off with a discussion about The Century Foundation's report card on state care policies. No state scored an A, but some are making strides with Bs. Massachusetts, California, Colorado, Minnesota, and Oregon topped the list, while others lagged behind. The report card seems to be a wake-up call for states to improve their care infrastructure.

Michigan's Childcare Initiatives

Michigan is ahead of the game, surpassing its goal of creating 1,000 new childcare programs by 2025. The state's focus on recruiting staff, local incubation funds, and grants for new centers is a model for others to follow.

Oklahoma's Tax Credit for Family Caregivers

Oklahoma introduced a tax credit for family caregivers, a first of its kind, to alleviate some financial burdens. It's a step in the right direction, though the $1.5 million cap seems modest compared to the overall unpaid care provided in the state.

Georgia Expands Childcare Tax Credit

Georgia is making childcare more affordable by increasing the tax credit from $3,000 to $4,000 per dependent, which will result in about $50 in tax savings per child.

Alabama's Proposed Employer Incentives

Alabama is considering a bill that would provide tax credits to employers who offer childcare, aiming to boost workforce participation and address the staffing shortage in childcare providers.

Moms First and BCG Report

The highlight of our episode was the Moms First and Boston Consulting Group event at the U.S. Chamber of Commerce. The report titled "The Employee Benefit That Pays for Itself" showcased how companies like Steamboat, Fast Retailing, UPS, Synchrony, and Etsy are offering childcare benefits with a positive ROI. Retaining just 1% of eligible employees can cover the cost of these benefits, and companies are seeing returns as high as 425%.

Employer Childcare Benefits

• Steamboat: Near-site childcare center with a 20% discount for employees.
• Fast Retailing: Monthly $1,000 stipend for childcare.
• UPS: Pilot program for emergency onsite childcare for hourly workers.
• Synchrony: 60 days of backup care annually, with a mix of reimbursement and vendor-provided care.
• Etsy: Up to $4,000 annually in backup care credits and a $1,000 annual work-life stipend.

Closing Thoughts

We wrapped up with a fun fact linking back to one of our earlier episodes about Col

Support the Show.

Thank you for joining us on 'Childcare Tax Break Breakdown'! If you found our deep dive into childcare benefit programs insightful, please consider subscribing for more valuable discussions. For further information, questions, or to share your experiences with childcare benefits, DM Doug or myself here on LinkedIn. Stay tuned for our next episode, where we'll explore more current and upcoming childcare grants and tax programs employers can take advantage of. Don't forget to leave us a review and share this episode with your colleagues. Together, let's make the most of workplace benefits and tax breaks!

Disclaimer: This podcast is for informational purposes only and shouldn't be seen as financial or legal advice. Tax rules change and can be complex, so it's always a good idea to check with a professional for your specific needs. We're not responsible for how this information is used.