Federal tax incentives explainer
The expanded §45F employer-provided child care credit (tax years 2026+) and the Dependent Care FSA, explained for non-specialists, with official sources and the questions to bring to your CPA.
Educational information, not tax advice.
How regional partners use this
Pairs with the funding conversations the existing Oregon toolkit starts — current-law figures, sourced and dated, for the employer who asks “what does the federal credit actually cover?”
When to use this tool
Use this guide when a business leader, CFO, or CPA asks what federal support actually exists for employer-sponsored child care — before any commitment is made. It turns the two main federal mechanisms into plain language you can forward, and it pairs with the interactive estimator for putting real numbers behind the conversation.
What’s inside
- The expanded §45F employer-provided child care credit (tax years 2026+), in plain language
- The Dependent Care FSA and how it complements the credit
- What counts as qualified spending, including provider contracts
- The questions to bring to your CPA before acting
- Official sources for every figure
Sources & verification
- IRS — Employer-provided child care credit (tax year 2026 and later)
- 26 U.S.C. §45F
- Congressional Research Service — The 45F Tax Credit for Employer-Provided Child Care (IF12379)
Figures in this guide were verified against the official sources above as of 2026-07-15. Educational information — not tax, legal, or financial advice; consult a qualified tax professional before making decisions.