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We dive into the enhanced employer-provided child care tax credit hidden in the "One Big Beautiful Bill Act" and why ignoring this opportunity is benefits malpractice for employers seeking to attract and retain talent.

• The employer-provided child care tax credit (45F) is increasing from $150,000 to $500,000 for large businesses and $600,000 for small businesses starting January 1, 2026
• Large businesses can now receive 40% back and small businesses 50% back on qualified child care expenditures
• The new legislation clarifies that employers can use third-party intermediaries and don't need to build or operate their own facilities
• Small businesses can pool resources to implement shared child care programs
• Payments must go directly from employer to provider, not through employee accounts
• Properly structured benefits can help reduce an employee's annual child care costs from $15,000 to $5,900 with just a $3,000 employer contribution
• The program can be stacked with state tax credits, Dependent Care FSAs (now $7,500), and the Child and Dependent Care Tax Credit
• Companies have roughly six months to design and implement programs to take advantage of this credit starting in 2026

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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.