{"id":24200,"date":"2025-07-07T17:23:29","date_gmt":"2025-07-08T00:23:29","guid":{"rendered":"https:\/\/tootris.com\/edu\/?p=24200"},"modified":"2025-10-20T14:08:35","modified_gmt":"2025-10-20T21:08:35","slug":"the-new-500k-child-care-tax-credit-cfos-cant-afford-to-ignore","status":"publish","type":"post","link":"https:\/\/tootris.com\/edu\/blog\/news\/the-new-500k-child-care-tax-credit-cfos-cant-afford-to-ignore\/","title":{"rendered":"The New $500K Child Care Tax Credit CFO&#8217;s Can&#8217;t Afford to Ignore"},"content":{"rendered":"\n<h6 class=\"wp-block-heading\" id=\"new-federal-incentives-mean-you-can-support-employees-and-slash-your-tax-bill-tootris-is-working-to-make-it-easier-for-you-to-claim-every-dollar\"><em>New federal incentives mean you can support employees and slash your tax bill \u2014 TOOTRiS is working to make it easier for you to claim every dollar.<\/em><\/h6>\n\n\n\n<p><\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"what-the-obbba-means-for-business-and-why-you-should-care-1\">What the OBBBA Means for Business \u2014 and Why You Should Care<\/h4>\n\n\n\n<p>Child Care is a family issue, a workforce issue, a business priority, and now, a financial incentive.<\/p>\n\n\n\n<p>With the passage of the One Big Beautiful Bill Act (OBBBA), congress has delivered a message: businesses that support working families deserve support in return. The bill includes historic changes to the Employer-Provided Child Care Tax Credit (Section 45F), providing businesses of all sizes with financial incentives for helping employees access care.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\" id=\"key-enhancements\">Key Enhancements:<\/h5>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Tax Credit increased from 25% to 40% (single businesses) and 50% (coalitions of small businesses) <\/strong>on qualified Child Care expenses.<\/li>\n\n\n\n<li><strong>Annual credit cap raised<\/strong> to <strong>$500,000<\/strong> for larger employers and <strong>$600,000<\/strong> for small businesses.<\/li>\n\n\n\n<li><strong>Credit now indexed to inflation<\/strong>, ensuring long-term financial sustainability.<\/li>\n\n\n\n<li><strong>Eligible expenses<\/strong>, including on-site Child Care, subsidies, contracts with licensed providers, and intermediary services helping employees locate Child Care.<\/li>\n<\/ul>\n\n\n\n<p>As <strong>Senator Katie Britt (R-AL)<\/strong>, co-sponsor of the Child Care Availability and Affordability Act that became part of OBBBA said: <em>\u201cThis is a game-changer for working families and the businesses that stand behind them.\u201d<\/em><\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"why-this-matters-the-new-business-case-for-child-care\">Why This Matters: The New Business Case for Child Care<\/h4>\n\n\n\n<p>There\u2019s never been a stronger alignment between <strong>supporting your workforce<\/strong> and <strong>growing your business<\/strong>. Here\u2019s why companies are paying attention:<\/p>\n\n\n\n<h5 class=\"wp-block-heading\" id=\"tax-savings-reinvested\">Tax Savings, Reinvested<\/h5>\n\n\n\n<p>Dollars spent on eligible Child Care Benefits can bring up to <strong>40 cents back in tax credits (50 cents back for small business coalitions)<\/strong>. If you spend $1 million annually supporting employee care needs, you could receive between <strong>$400,000 and $500,000<\/strong> federal tax credit \u2014 plus <a href=\"https:\/\/tootris.com\/edu\/blog\/government\/business-child-care-tax-credits-incentives-by-state-2023\/\"><strong>state-level incentives<\/strong><\/a> in some regions.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\" id=\"recruitment-retention-productivity\">Recruitment, Retention &amp; Productivity<\/h5>\n\n\n\n<p>Child Care is one of the top three reasons women leave the workforce. Offering solutions helps employers:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Reduce absenteeism<\/li>\n\n\n\n<li>Minimize turnover<\/li>\n\n\n\n<li>Attract and retain high-value, diverse talent<\/li>\n\n\n\n<li>Increase employee satisfaction and engagement<\/li>\n<\/ul>\n\n\n\n<h5 class=\"wp-block-heading\" id=\"competitive-differentiation\">Competitive Differentiation<\/h5>\n\n\n\n<p>As more employers move toward inclusive, family-friendly benefits, those who lag behind risk losing top talent. Being a leader in Child Care support enhances your employer brand and demonstrates meaningful commitment to equity.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"tootris-your-turnkey-partner-in-maximizing-the-credit-without-the-hassle\">TOOTRiS: Your Turnkey Partner in Maximizing the Credit \u2014 Without the Hassle<\/h4>\n\n\n\n<p>TOOTRiS is the nation&#8217;s leading on-demand Child Care Benefits platform, helping employers deliver powerful support to working parents <strong>without building a facility, adding headcount, or changing payroll systems.<\/strong><\/p>\n\n\n\n<p>We simplify every step \u2014 <strong>from benefit design to execution to compliance<\/strong> \u2014 so you can unlock the full financial and workforce impact of Section 45F with ease.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\" id=\"what-tootris-does-for-you\">What TOOTRiS Does for You:<\/h5>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Connects employees to care in real time:<\/strong> Access over 230,000 Child Care providers across all 50 states, searchable by location, availability, hours, pricing, and care type.<\/li>\n\n\n\n<li><strong>Administers fully tax-eligible benefits:<\/strong> We manage stipends, subsidies, and reimbursements in ways that ensure compliance and audit readiness.<\/li>\n\n\n\n<li><strong>Handles all the reporting:<\/strong> TOOTRiS tracks eligible expenses, provides usage data, and prepares documentation to support IRS filings and credit claims.<\/li>\n\n\n\n<li><strong>Minimizes HR lift:<\/strong> Our platform is plug-and-play, with minimal setup and zero ongoing administrative burden for HR or payroll teams.<\/li>\n\n\n\n<li><strong>Customizes to your workforce:<\/strong> Whether you\u2019re a manufacturer with frontline shift workers or a remote tech company, TOOTRiS adapts to your needs and culture.<\/li>\n<\/ul>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><strong>\u201cEmployers who embrace these changes will not only save on taxes \u2014 they\u2019ll win the talent war.\u201d<\/strong><br>\u2014 <em>Alessandra Lezama, CEO, TOOTRiS<\/em><\/p>\n<\/blockquote>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"how-the-section-45f-credit-works-made-simple\">How the Section 45F Credit Works (Made Simple)<\/h4>\n\n\n\n<p>Here\u2019s a simplified view of how businesses could work with TOOTRiS to ensure the most opportunity for this Child Care tax credit:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th><strong>Qualified Expense<\/strong><\/th><th><strong>TOOTRiS Support<\/strong><\/th><th><strong>Tax Credit Value<\/strong><\/th><\/tr><\/thead><tbody><tr><td>On-site Child Care facility<\/td><td>Partner with TOOTRiS for operations + supplemental support<\/td><td>40% (single businesses) and 50% (coalitions of small businesses) on qualified Child Care expenses.<\/td><\/tr><tr><td>Providing access to a wide variety of licensed providers to meet employee needs<\/td><td>TOOTRiS platform enables employees to quickly find, vet, and enroll with providers<\/td><td>40% (single businesses) and 50% (coalitions of small businesses) on qualified Child Care expenses.<\/td><\/tr><tr><td>Subsidies or stipends paid directly to providers on behalf of employees<\/td><td>TOOTRiS manages benefit administration, verification, and disbursement<\/td><td>40% (single businesses) and 50% (coalitions of small businesses) on distributed funds<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"real-world-examples\">Real-World Examples<\/h4>\n\n\n\n<p>Let\u2019s break this down further with the following hypothetical scenarios based on current understanding (please consult with your tax advisor for final details):<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>A national retail chain<\/strong> launches a $400\/month stipend for 2,000 employees = $9.6M\/year \u2192 TOOTRiS administers the program \u2192 <strong>$500,000 maximum tax credit<\/strong> for the employer.<\/li>\n\n\n\n<li><strong>A mid-size regional hospital<\/strong> partners with TOOTRiS to offer staff access to a wide variety of local providers without a stipend \u2192 TOOTRiS manages the entire benefit, provides one-on-one concierge support, and comprehensive reporting \u2192 employer receives a <strong>10% credit<\/strong> on the cost up to $500,000 maximum.<\/li>\n\n\n\n<li><strong>A small tech startup<\/strong> joins with a coalition of other small businesses providing direct payments of Child Care expenses up to $6,000 per employee \u2192 TOOTRiS handles verification and reimbursement distribution for the coalition \u2192 startup and other small businesses claim the <strong>small business maximum $600K credit shared equally among the benefit given.<\/strong><\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"how-to-get-started-fast\">How to Get Started \u2014 Fast<\/h4>\n\n\n\n<p>TOOTRiS makes it easy to get up and running in just weeks. Here\u2019s how:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Step 1: Discovery &amp; Strategy<\/strong> \n<ul class=\"wp-block-list\">\n<li>Meet with a TOOTRiS Child Care Benefits Advisor to explore the needs of your workforce, conduct a geo-analysis, review current offerings, and align on goals.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Step 2: Custom Plan Creation<\/strong>\n<ul class=\"wp-block-list\">\n<li>We design a tailored Child Care solution \u2014 whether it&#8217;s direct reimbursements, marketplace access, contracted providers, or a combination.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Step 3: Employee Rollout<\/strong>\n<ul class=\"wp-block-list\">\n<li>Our team handles all onboarding, communication, and training to ensure high adoption and satisfaction.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Step 4: Tax Credit Optimization<\/strong>\n<ul class=\"wp-block-list\">\n<li>We document all eligible expenses, track compliance, and provide the support your finance team needs to claim your full 45F tax credit.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"the-broader-impact-your-leadership-matters\">The Broader Impact\u2014Your Leadership Matters<\/h4>\n\n\n\n<p>By supporting working families, your company helps:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Increase labor force participation<\/li>\n\n\n\n<li>Improve childhood outcomes<\/li>\n\n\n\n<li>Strengthen local economies<\/li>\n\n\n\n<li>Close gender equity gaps in the workplace<\/li>\n<\/ul>\n\n\n\n<p>As <strong>the Early Care &amp; Education Consortium<\/strong> said in support of the bill:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cIncluding $16 billion in Child Care tax incentives sends a strong signal to employers that they are part of the solution.\u201d<\/em><\/p>\n<\/blockquote>\n\n\n\n<p>With TOOTRiS, you are not only doing the right thing \u2014 you\u2019re doing the smart thing. <strong>You\u2019re building a more resilient, inclusive, and future-ready business.<\/strong><\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"building-the-future-of-child-care-for-workforce-stability\">Building the Future of Child Care for Workforce Stability<\/h4>\n\n\n\n<p>Whether you&#8217;re just starting to explore Child Care Benefits or looking to maximize the new tax credits, <strong>TOOTRiS is your trusted partner<\/strong>. We\u2019ll help you make sense of the legislation, design the right solution, and deliver it with no extra work for your HR team so that you can build and maintain a reliable workforce.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"you-don-t-need-a-child-care-center-you-don-t-need-a-new-department-you-just-need-tootris\">You don\u2019t need a Child Care center. You don\u2019t need a new department. You just need TOOTRiS.<\/h4>\n\n\n\n<p><strong>Take action now! The incentives are real. The impact is massive. And the time is now.<\/strong><\/p>\n\n\n\n<p>\ud83d\udc49 <a href=\"https:\/\/calendly.com\/ericcutler\/15min-1\">Schedule your free consultation<\/a> today and discover how TOOTRiS can help your business lead the way \u2014 by supporting families, unlocking tax credits, and building a workforce that thrives.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><em>Because when parents succeed, businesses succeed. And TOOTRiS is here to make that happen.<\/em><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>New federal incentives mean you can support employees and slash your tax bill \u2014 TOOTRiS is working to make it easier for you to claim every dollar. What the OBBBA Means for Business \u2014 and Why You Should Care Child Care is a family issue, a workforce issue, a business priority, and now, a financial [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":24201,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_gspb_post_css":"","om_disable_all_campaigns":false,"footnotes":""},"categories":[244,48],"tags":[510,396,259,598,531],"class_list":["post-24200","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employers","category-news","tag-breaking","tag-child-care-benefits","tag-child-care-bill","tag-child-care-incentives","tag-child-care-tax-credit"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/tootris.com\/edu\/wp-json\/wp\/v2\/posts\/24200","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tootris.com\/edu\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tootris.com\/edu\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tootris.com\/edu\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/tootris.com\/edu\/wp-json\/wp\/v2\/comments?post=24200"}],"version-history":[{"count":0,"href":"https:\/\/tootris.com\/edu\/wp-json\/wp\/v2\/posts\/24200\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tootris.com\/edu\/wp-json\/wp\/v2\/media\/24201"}],"wp:attachment":[{"href":"https:\/\/tootris.com\/edu\/wp-json\/wp\/v2\/media?parent=24200"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tootris.com\/edu\/wp-json\/wp\/v2\/categories?post=24200"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tootris.com\/edu\/wp-json\/wp\/v2\/tags?post=24200"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}