536574 - Employer Childcare Tax Credit

The Iowa Employer Childcare Tax Credit is a program administered by the Iowa Economic Development Authority to provide tax credits to eligible employers for qualified childcare expenditures made in Iowa. The program aims to support employers in providing childcare services to their employees. Authorized expenditures include acquiring, constructing, rehabilitating, or expanding property for a qualified childcare facility, operating costs of a qualified childcare facility, contracting with a qualified childcare facility to provide services to employees, and contracting for resource and referral services to improve employee access. To be eligible for the tax credit, employers must be eligible for the federal tax credit for employer-provided child care expenditures and complete a CPA examination verifying expenditures are eligible under Iowa Code and administrative rules. • Eligible employers can apply for the tax credit within 90 days of the close of the tax year during which qualified expenditures are paid or incurred. • The tax credit amount is equal to the proportion of the federal employer-provided child care tax credit for which the employer was eligible in the same tax year attributable to expenditures made in Iowa. • Administrative rules for the program can be found at 261.57.pdf (iowa.gov). • Description of qualified expenditures can be found at 26 USC 45F: Employer-provided child care credit (house.gov).