Welcome to Episode 12 of the Tax Break Breakdown with your hosts, Greg and Doug. After a few months' hiatus, we're back with some important updates and discussions on childcare tax credits and their implications for both employers and employees.

Key Highlights:

Personal Update:

• Greg's New Baby: Greg shared the exciting news of welcoming his new baby boy, Sawyer, three months ago. He expressed gratitude for the generous paid leave policy at their company, Upwards, which allowed him to take three months off—a stark contrast to the limited leave he had with his first two children.

Childcare Crisis:

• Ongoing Issues: The childcare crisis remains a significant issue, regardless of political changes. We emphasized the importance of not solely relying on the government to solve this problem and highlighted the need for sustainable models involving multiple stakeholders.

Election Impact:

• Legislative Shifts: We discussed the potential impacts of the recent election results on childcare policies. While some initiatives like capping childcare spend to 7% of income may face challenges, there is hope for bipartisan support at the state level.

State-Level Initiatives:

• West Virginia: House Bill 226 established a state-level child and dependent care tax credit, benefiting around 16,000 families. This credit is non-refundable and can reduce tax liability to zero but does not result in a refund.
• Florida: Starting October 1st, employers in Florida can apply for tax credits to support childcare facilities or payments. This program offers significant credits, up to $1 million, for creating or maintaining childcare facilities and paying for employee childcare.

Practical Insights:

• Employer Strategies: We provided practical advice for employers on how to navigate and take advantage of these tax credits. From helping employees find care to implementing prepaid backup care programs, there are various ways to support employees without incurring prohibitive costs.

Application Details:

• Florida Tax Credit Application: We detailed the application process for Florida's tax credit program, including the necessary information and the cap of $3,600 per eligible child per year. Unused credits can be carried forward for up to five years, and credits can be transferred within affiliated groups.

Final Thoughts:

• Layering Benefits: We emphasized the importance of layering federal and state benefits to maximize support for childcare. Our company, Upwards, plays a crucial role in helping employers navigate these complex programs.

Thank you for tuning in to this episode of the Tax Break Breakdown. We look forward to bringing you more insights and updates in our next episode. Until then, take care!

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.