The federal Employer-Provided Child Care Tax Credit (IRC Section 45F), combined with Utah’s complementary corporate and individual business child care tax credits, create a valuable incentive for employers to redirect funds otherwise used to pay federal and state income taxes to instead support their employees’ child care needs.  

Investing in child care benefits not only helps businesses attract and retain top talent but also boosts employee productivity and morale. By reducing some of the financial burden of child care, companies can foster a supportive work environment, reduce absenteeism, and enhance overall job satisfaction. According to the U.S. Chamber of Commerce Foundation, Utah’s economy suffers an annual loss of $1.36 billion due to child care issues.  

The Utah Association of CPAs is hosting a webinar to learn more about these valuable tax credits on November 12 from noon to 1 pm. You can register here to hear from tax experts about how to utilize these credits to support your employees.  

Also, the Policy Project has posted resources for employers, employees, and childcare providers and is actively recruiting employers for its Family-Forward Employer Network.  

Employers may choose to use an intermediary or contract directly with one or more child care providers. Employers who are interested in contacting companies that may serve as an intermediate entity should consider contacting national firms such as Upwards or Tootris. 

Don’t miss this opportunity to turn your tax liability into critical workforce support.