economy
Childcare tax breaks can save families and businesses money
Childcare can be expensive for both parents and their employers. Yet existing tax incentives to help defray those costs may go unused, a new report finds.
TL;DR
- The U.S. economy could lose up to $329 billion over 10 years due to a lack of available childcare.
- Existing tax incentives for childcare, such as the CDCTC and DCAP, are underused by families and difficult to navigate.
- Only 13% of private sector workers have access to employer-provided childcare benefits.
- Businesses can utilize the 45F tax credit to offset the cost of providing childcare, but less than 1% of corporate returns have used this program.
- Full use of tax incentives could save businesses money, reduce employee turnover, and increase productivity, while also saving parents money on childcare expenses.