IRS reminds businesses about the Childcare Tax Credit

By Evan Walters, Samuel Hamer, Edward Froelich, Michael Scarduzio and Matthew J. Blaney on July 10, 2025

The Internal Revenue Service (IRS) recently released Tax Tip 2025-39, reminding businesses about the Childcare Tax Credit. Taxpayers may receive a credit of up to $150,000 per year to offset 10% of qualified childcare resource and referral costs and 25% of qualified childcare facility costs. To be eligible for the credit, an employer must have paid or incurred qualified childcare costs during the tax year to provide childcare services to employees.

Learn more about other new IRS guidance in this IRS roundup.

Tags: Childcare Tax Credit, Internal Revenue Service, IRS, Tax Tip 2025-39

Evan Walters
Evan Walters focuses his practice on US and international taxation. He has experience across a wide range of issues involving corporate and partnership taxation. Read Evan Walters' full bio.

Samuel Hamer
Samuel (Sam) F. Hamer focuses his practice on US and international tax matters. Read Samuel Hamer's full bio.

Edward Froelich
Edward L. Froelich represents domestic and foreign public corporations, privately held companies, partnerships, trusts and individuals across the spectrum of federal tax controversies, including audits, trials and appeals. Ed’s clients include businesses, business owners and investors with operations and interests in the financial services, technology, real estate, healthcare and other industries. Read Edward Froelich's full bio.

Michael Scarduzio
Michael J. Scarduzio focuses his practice on US and international tax matters, particularly civil and criminal tax litigation. From audit to litigation, he represents taxpayers in all phases of tax controversy, including novel issues of first impression such as financial hedging transactions using a captive insurer, US tax implications of a foreign master-feeder fund’s investment activities and matters arising under Internal Revenue Code (IRC) Sections 7216 and 7212(a). Read Michael Scarduzio's full bio.