OMB No. 1545-1809 Credit for Employer-Provided Childcare

Facilities and Services

Form 8882

Department of the Treasury

Internal Revenue Service

Name(s) shown on return Identifying number

For Paperwork Reduction Act Notice, see instructions. Cat. No. 33436Y Form 8882 (2005)

Attachment

 Attach to your tax return. Sequence No.131

Part II Allowable Credit (See Who must file Form 3800 to find out if you complete Part II or file Form 3800.)

● Individuals. Enter the amount from Form 1040, line 44

8

Corporations. Enter the amount from Form 1120, Schedule J, line 3; Form 1120-A,

Part I, line 1; or the applicable line of your return

●

●

11a 11a

b Credits from Form 1040, lines 48 through 54 11b

11d

Foreign tax credit

d

e 11e

Possessions tax credit (Form 5735, line 17 or 27)

f

Nonconventional source fuel credit (Form 8907, line 23)

Other specified credits (see instructions)

Add lines 11a through 11e 11f

12

Net income tax. Subtract line 11f from line 10. If zero, skip lines 13 through 16 and enter -0- on

line 17

9 Alternative minimum tax:

● Individuals. Enter the amount from Form 6251, line 35

● Corporations. Enter the amount from Form 4626, line 14 9

● Estates and trusts. Enter the amount from Form 1041, Schedule I, line 56

13

Tentative minimum tax (see instructions):

● Individuals. Enter the amount from Form 6251, line 33

13

● Corporations. Enter the amount from Form 4626, line 12

● Estates and trusts. Enter the amount from Form 1041,

Schedule I, line 54

Enter 25% (.25) of the excess, if any, of line 13 over $25,000 (see

instructions)

14

Subtract line 16 from line 12. If zero or less, enter -0-

16

15

Credit allowed for the current year. Enter the smaller of line 7 or line 17 here and on Form

1040, line 55; Form 1120, Schedule J, line 6d; Form 1120-A, Part I, line 2; Form 1041, Schedule

G, line 2c; or the applicable line of your return. If line 17 is smaller than line 7, see instructions



c 11c

8 Regular tax before credits:

10 Add lines 8 and 9 10

12

Enter the greater of line 14 or line 15

14

 15

Estates and trusts. Enter the sum of the amounts from Form 1041, Schedule G, lines 1a

and 1b, or the amount from the applicable line of your return

Net regular tax. Subtract line 11f from line 8. If zero or less, enter -0-

16

17



Current Year Credit (Members of controlled groups or businesses under common control, see instructions.)

1

2 2

3

5

Part I

Qualified childcare facility expenditures paid or incurred (see

instructions)

3

5

Current year credit. Enter the smaller of line 6 or $150,000 (S corporations, partnerships,

estates, and trusts, see instructions)

Enter 25% (.25) of line 1

a

b

Shareholder

Partner

If you are a—

4

Then enter the total of the current year credits from—

Schedule K-1 (Form 1065), box 15, code F, G, or U

Schedule K-1 (Form 1120S), box 13, code F, G, or U 

1

Add lines 2, 4, and 5

Qualified childcare resource and referral expenditures paid or incurred

Enter 10% (.10) of line 3

c Beneficiary Schedule K-1 (Form 1041), box 13, code N

6

7

6

7

17

18

18

4

Form 8882 credits from pass-through entities (if more than one entity, see instructions):

EIN of pass-through entity

2005
Form 8882 (2005) Page 2

Purpose of Form

Employers use Form 8882 to claim the credit for qualified

childcare facility and resource and referral expenditures. The

credit is part of the general business credit. You may claim

the credit any time within 3 years from the due date of your

return on either an original or amended return.

How To Figure the Credit

The credit is 25% of the qualified childcare facility

expenditures plus 10% of the qualified childcare resource

and referral expenditures paid or incurred during the tax year.

The credit is limited to $150,000 per tax year.

Qualified childcare expenditures are amounts paid or

incurred:

● To acquire, construct, rehabilitate, or expand property that:

1. Is to be used as part of a qualified childcare facility of

the taxpayer,

2. Is depreciable (or amortizable) property, and

3. Is not part of the principal residence of the taxpayer or

any employee of the taxpayer;

● For the operating expenses of a qualified childcare facility

of the taxpayer, including expenses for training of employees,

scholarship programs, and providing increased compensation

to employees with higher levels of childcare training; or

● Under a contract with a qualified childcare facility to

provide childcare services to employees of the taxpayer.

Note. Any expenses for childcare included in qualified

childcare facility expenditures may not exceed the fair market

value of such care.

A qualified childcare facility is a facility that meets the

requirements of all applicable laws and regulations of the

state or local government in which it is located, including the

licensing of the facility as a childcare facility. The following

conditions must also be met.

● The principal use of the facility must be to provide

childcare (unless the facility is also the personal residence of

the person operating the facility).

● Enrollment in the facility must be open to employees of the

taxpayer during the tax year.

● If the facility is the principal trade or business of the

taxpayer, at least 30% of the enrollees of the facility must be

dependents of employees of the taxpayer.

● The use of the facility (or the eligibility to use the facility)

must not discriminate in favor of highly compensated

employees.

Qualified childcare resource and referral expenditures

are amounts paid or incurred under a contract to provide

childcare resource and referral services to employees of the

taxpayer. The provision of the services (or the eligibility to

use the services) must not discriminate in favor of highly

compensated employees.

No Double Benefit Allowed

You must reduce:

Recapture of Credit

You may have to recapture part or all of the credit if, before

the 10th tax year after the tax year in which your qualified

childcare facility is placed in service, the facility ceases to

operate as a qualified childcare facility or there is a change in

ownership of the facility. However, a change in ownership will

not require recapture if the person acquiring the interest in

the facility agrees, in writing, to assume the recapture liability.

See section 45F(d) for details.

Controlled Groups

All members of a controlled group of corporations (within the

meaning of section 52(a)) and all partnerships, corporations,

unincorporated businesses, and other persons under

common control (within the meaning of section 52(b)) are

treated as one person for purposes of the credit. The group

member who would have the largest credit if this rule did not

apply completes Form 8882, Part I, figures the group credit

on line 7, and skips Part II. On separate Forms 8882, each

member (including the member who completed the group

Form 8882) skips lines 1 through 6 and enters its share of

the group credit on line 7. Each member then completes Part

II on its separate form (or Form 3800, if required). Each

member also must attach a statement showing how the

group credit was divided among all members. The members

share the credit on line 2 in the same proportion that they

contributed qualified childcare facility expenditures and share

the credit on line 4 in the same proportion that they

contributed qualified resource and referral expenditures.

Additional Information

For more details, see section 45F.

Specific Instructions

Part I

Figure the credit for expenditures you paid on lines 1 through

4. Do not complete lines 1 through 4 for credits allocated to

you from S corporations, partnerships, estates, or trusts;

instead, complete line 5.

Line 1

Enter your qualified childcare facility expenditures (defined

above) paid or incurred during the tax year.

Line 3

Enter your qualified childcare resource and referral

expenditures (defined above) paid or incurred during the tax

year.

Line 5

Enter the amount of credit that was allocated to you as a

partner, shareholder, or beneficiary. Also enter the employer

identification number (EIN) of the pass-through entity. If you

received a credit from more than one pass-through entity,

write “see attached” in the entry space for the EIN, and

attach a statement showing the EIN and credit amount for

each pass-through entity.

General Instructions

Section references are to the Internal Revenue Code.

Any recapture tax is reported on the line of your tax return

where other recapture taxes are reported (or, if no such line,

on the “total tax” line). The recapture tax may not be used in

figuring the amount of any credit or in figuring the alternative

minimum tax.

● The basis of any qualified childcare facility by the amount

of the credit on line 7 allocable to capital expenditures

related to the facility,

● Any otherwise allowable deductions used to figure the

credit by the amount of the credit on line 7 allocable to those

deductions, and

● Any expenditures used to figure any other credit by the

amount of the credit on line 7 allocable to those expenditures

(for purposes of figuring the other credit).

Note. For credits entered on line 5, only the pass-through

entity is required to make this reduction.

Current Year Credit
Form 8882 (2005) Page 3

If you have comments concerning the accuracy of these

time estimates or suggestions for making this form simpler,

we would be happy to hear from you. See the instructions for

the tax return with which this form is filed.

Recordkeeping 6 hr., 42 min.

Learning about the law

or the form 42 min.

Preparing and sending

the form to the IRS 50 min.

The time needed to complete and file this form will vary

depending on individual circumstances. The estimated

burden for individual taxpayers filing this form is approved

under OMB control number 1545-0074 and is included in the

estimates shown in the instructions for their individual

income tax return. The estimated burden for all other

taxpayers who file this form is shown below.

Paperwork Reduction Act Notice. We ask for the

information on this form to carry out the Internal Revenue

laws of the United States. You are required to give us the

information. We need it to ensure that you are complying

with these laws and to allow us to figure and collect the right

amount of tax.

You are not required to provide the information requested

on a form that is subject to the Paperwork Reduction Act

unless the form displays a valid OMB control number. Books

or records relating to a form or its instructions must be

retained as long as their contents may become material in

the administration of any Internal Revenue law. Generally, tax

returns and return information are confidential, as required by

section 6103.

● A carryback or carryforward of any of those credits.

See the instructions for Form 3800 for a list of credits

included in the general business credit.

Line 14

See section 38(c)(5) for special rules that apply to married

couples filing separate returns, controlled corporate groups,

estates, and trusts.

Line 15

Although you may not owe alternative minimum tax (AMT),

you generally must still compute the tentative minimum tax

(TMT) to figure your credit. For a small corporation exempt

Line 18

If you cannot use all of your credit because of the tax liability

limit (line 17 is smaller than line 7), carry the unused credit

back 1 year then forward up to 20 years. See the instructions

for Form 3800 for details.

● More than one credit included in the general business

credit (other than a credit from Form 8844, 6478, or Section

B of Form 8835), or

Part II

The credit allowed for the current year may be limited based

on your tax liability. Use Part II to figure the allowable credit

unless you must file Form 3800, General Business Credit.

Who must file Form 3800. You must file Form 3800 if you

have:

● A credit for employer-provided childcare facilities and

services from a passive activity,

Estates and trusts. The credit on line 7 is allocated between

the estate or trust and the beneficiaries in proportion to the

income allocable to each. On the dotted line next to line 7, the

estate or trust should enter its part of the total credit. Label it

“1041 Portion” and use this amount in Part II (or Form 3800, if

required) to figure the credit to claim on Form 1041.

Line 7

S corporations and partnerships. Allocate the credit on line

7 among the shareholders and partners. Attach Form 8882

to the return and on Schedule K-1 show the credit for each

shareholder or partner. Electing large partnerships must

include this credit in “general credits.”

Allowable Credit

from the AMT under section 55(e), enter zero. Otherwise,

complete and attach the applicable AMT form or schedule.

Line 11e

Include on line 11e any amounts claimed on:

● Form 8834, Qualified Electric Vehicle Credit, line 20;

● Form 8910, Alternative Motor Vehicle Credit, line 18; or

● Form 8911, Alternative Fuel Vehicle Refueling Property

Credit, line 19.

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