Skip to content

Childcare Tax Credit

Childcare Tax Credit Blog

One issue that has lead many to put off re-entering the workforce from the pandemic fallout is the cost and difficulty in terms of finding affordable and quality childcare. The SBAC has determined it is such a significant issue that it has been added to our agenda for the 2022 Spring Session.

The childcare tax credit will provide working families resources to offset the costs associated with childcare. To be eligible, households must jointly earn an annual income below $75,000 and have at least one child under the age of 17.  Taxpayers that file individually must earn less than $45,000 and have one child under the age of 17.

Under this program, taxpayers shall receive a $1500 tax credit for the first child under age 17. An additional $500 will be allocated to each additional child under the age of 17 with a max payment of $2500 per family. This credit is intended to be used to offset the costs associated with childcare.

The program will be capped at $100,000,000 absent further appropriations.  This tax credit will sunset in 2025 unless extended by the legislature.

Program Details:

  • Tax credits for eligible working families to offset the costs of childcare
    • Eligible families must earn:
      • $75,000 or less filing jointly
      • $45,000 or less filing individually
    • Eligible families must also have at least one child under the age of 17
    • Tax credit of $1500 for the first child under age 17
      • $500 increase for each additional child under age 17
    • The maximum allowable tax credit per family is $2500
    • Program capped at $100,000,000
    • Program to sunset in 2025

Insights Archive

OPEN ONE SOLUTIONS

By jessica@sbacil.org | January 15, 2020

Custom integrated phone system designed to increase efficiency within your business choreographed with every function of the business. We provide the most advanced, state of the art equipment in IP telephony with as many, or as few features as you want, orchestrated to operate exactly how you want. Harney has collected a team of local…

PEACE OF MIND VIRTUAL ASSISTANCE

By jessica@sbacil.org | January 14, 2020

Peace of Mind Virtual Assistance has partnered with the Chicago area and US-based small business owners since 2003. Whether consulting, managing Operations, or C-level executive tasks we are here for you. We support easy to work with, ethical, fun, established professional service solo entrepreneurs (Attorneys, CFOs, creative firms, consultants, etc.) and businesses with teams of…

REGIMENT INVESTMENT BANK

By jessica@sbacil.org | January 13, 2020

The digital investment bank that utilizes reg-compliant marketplace technology to connect emerging entrepreneurs with earnest investors. At Regiment, our focus is two-fold… Raising capital from investors seeking non-traditional investment products. Funding early-stage companies and companies seeking capital for growth. but it’s our edge that sets us apart. Financial and technological expertise gives us an edge…

Scroll To Top