Employer Childcare Tax Credit Portal Opens Soon

The Mobile Chamber has provided a guide on Alabama’s HB 358 Alabama Employer Childcare Tax Credit, designed to help businesses support their employees with childcare costs. Those who help their workers pay for childcare for children aged 5 and under can get a tax credit to offset those costs. Small businesses with fewer than 25 employees can get back 100% of what they spend (up to $600,000), while larger businesses can claim 75%. Reservations must be made early each year, however, because of a statewide cap that is met quickly; the need to to work with licensed, STAR-rated childcare providers that accept state subsidies; and the need to to keep good records. The credit reservation portal opens January 5, and the program runs through 2027.