Form 8882

(Rev. December 2013)

Department of the Treasury 

Internal Revenue Service

Credit for Employer-Provided Childcare 

Facilities and Services

▶ Attach to your tax return. 

▶ Information about Form 8882 and its instructions is at www.irs.gov/form8882. 

OMB No. 1545-1809 

 

 

 

Attachment 

Sequence No. 131

Name(s) shown on return Identifying number 

1 Qualified childcare facility expenditures paid or incurred . . . . . 1 

2 Enter 25% (.25) of line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . 2 

3 Qualified childcare resource and referral expenditures paid or incurred 3

4 Enter 10% (.10) of line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . 4

5 Credit for employer-provided childcare facilities and services from partnerships, S corporations, 

estates, and trusts . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

6 Add lines 2, 4, and 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 

7 Enter the smaller of line 6 or $150,000. Estates and trusts, go to line 8. Partnerships and S 

corporations, stop here and report this amount on Schedule K. All others, stop here and report this 

amount on Form 3800, line 1k . . . . . . . . . . . . . . . . . . . . . . . . 7

8 Amount allocated to beneficiaries of the estate or trust (see instructions) . . . . . . . . . 8

9 Estates and trusts. Subtract line 8 from line 7. Report this amount on Form 3800, line 1k . . . . 9

General Instructions

Section references are to the Internal Revenue Code 

unless otherwise noted.

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. 

Taxpayers, other than partnerships, S corporations,

estates, or trusts, whose only source of this credit is from 

those pass-through entities, are not required to complete 

or file this form. Instead, they can report this credit 

directly on Form 3800.

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.

For Paperwork Reduction Act Notice, see back of form. Cat. No. 33436Y Form 8882 (Rev. 12-2013) 
Form 8882 (Rev. 12-2013) Page 2 

No Double Benefit Allowed

You must reduce:

• 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.

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.

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.

Member of Controlled Group or Business

Under Common Control

For purposes of figuring the credit, all members of a 

controlled group of corporations (as defined in section 52

(a)) and all members of a group of businesses under 

common control (as defined in section 52(b)), are treated 

as a single taxpayer. As a member, compute your credit 

for lines 2 and 4 as follows: 

• Compute your credit for line 2 based on your 

proportionate share of qualified childcare facility 

expenditures giving rise to the group’s credit for line 2. 

Enter your share of the credit on line 2. Attach a 

statement showing how your share of the credit was 

figured, and write “See Attached” next to the entry space 

for line 2.

• Compute your credit for line 4 based on your 

proportionate share of qualified resource and referral 

expenditures giving rise to the group’s credit for line 4. 

Enter your share of the credit on line 4. Attach a 

statement showing how your share of the credit was 

figured, and write “See Attached” next to the entry space 

for line 4.

Specific Instructions

Line 8

Estates and trusts. Allocate the credit for employerprovided childcare facilities and services on line 7 

between the estate or trust and the beneficiaries in the 

same proportion as income was allocated, and enter the 

beneficiaries’ share on line 8. 

If the estate or trust is subject to the passive activity 

rules, include on line 5 any credit for employer-provided 

childcare facilities and services from passive activities 

disallowed for prior years and carried forward to this year. 

Complete Form 8582-CR, Passive Activity Credit 

Limitations, to determine the allowed credit that must be 

allocated between the estate or trust and the 

beneficiaries. For details, see the Instructions for Form 

8582-CR.

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.

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.

Recordkeeping .. . . . . . . . . . 2 hr., 37 min.

Learning about the law or the form . . . . 30 min.

Preparing and sending 

the form to the IRS . . . . . . . . . . . .34 min.

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.