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Child Care Center Business Income Tax Credit Application

The deadline for this application is November 1, 2024.

The Child Care Center Business Income Tax Credit is a tax credit for businesses that provide free or subsidized infant or toddler care for their employees.

Note: If you are looking for information about the Childcare Center Abatement that covers up to $225,000 of constructions costs for property owners who create a child care center or increase the number of seats at an existing child care center, visit the Childcare Center Abatement page.

Who Can Apply?

Businesses that are subject to the New York City unincorporated business tax, general corporation tax, or business corporation tax may apply.

The business must hold a valid permit issued by the NYC Department of Health and Mental Hygiene (DOHMH).

The information provided on the application must be certified by a certified public accountant.

How to Apply

You must register to file a business tax return at www.nyc.gov/eservices before you can file a child care credit application online.

Once you have registered, you will be able to log in. From your account panel, click “More Requests,” then select “Child Care Credit Application” within the Business Credit Applications section.

Please note that if you are included as a subsidiary in a combined group filing a general corporation tax return, business corporation tax return, or other type of return, you must register in e-Services with your own EIN in order to apply for the child care credit.

Paper applications are also available upon request, either through e-Services web messaging or by calling 311.

How the Credit Is Calculated

The 4% base credit amount is generally based on the weekly child care subsidy market rates for infants and toddlers for New York City, as set forth in a child care market survey report by the New York State Office of Children and Family Services published in 2022, before exclusions or proration. The credit is limited to a span of three tax years: 2023, 2024, and 2025. It is calculated based on the average number of new or additional child care seats that are occupied while the child care program is in operation. The credit is capped at 25 new or additional child care seats that are occupied. There is a $25 million cap on the total value of credits that can be issued each year, and the credits will be prorated if this amount is exceeded.

If you submit an incomplete application on or before the deadline, the amount of the credit will be determined after the credits for all other taxpayers who have submitted complete applications have been allocated. Because there is a $25 million cap on the total amount of this credit available, an incomplete application may result in the loss of some or all of the credit.

For more information and details, please see the Child Care Credit Application Instructions.