Childcare Tax Break Breakdown

Episode 17:Federal Shutdown & Bipartisan Breakthroughs: What Employers Need to Know

Send us Fan Mail [https://www.buzzsprout.com/2287432/fan_mail/new] In this quick-hit episode, Greg and Doug break down three timely topics every employer should track: * Federal shutdown implications for childcare: potential CCDBG disruptions, what’s likely, and how to support employees if subsidies pause or payments lag. * The Child Care Modernization Act (SB 2828): bipartisan momentum, key provisions to fix provider payment rates, increase supply, and support mixed-delivery care—and why appropriations still matter. * Colorado’s playbook: why the state ranks high on family resources, and market lessons on aligning employers, providers, government, and tech to actually move the needle. Why it matters: Childcare is workforce infrastructure. When care is unavailable or unaffordable, employers lose talent and productivity. Get the signals to watch and practical moves to prepare. Support the show [https://www.buymeacoffee.com/taxbreakbreakdown] Thank you for joining us on 'Childcare Tax Break Breakdown'! If you found our deep dive into childcare benefit programs insightful, please consider subscribing for more valuable discussions. For further information, questions, or to share your experiences with childcare benefits, DM Doug or myself here on LinkedIn. Stay tuned for our next episode, where we'll explore more current and upcoming childcare grants and tax programs employers can take advantage of. Don't forget to leave us a review and share this episode with your colleagues. Together, let's make the most of workplace benefits and tax breaks! Disclaimer: This podcast is for informational purposes only and shouldn't be seen as financial or legal advice. Tax rules change and can be complex, so it's always a good idea to check with a professional for your specific needs. We're not responsible for how this information is used.

Episode 16: New Mexico Universal Childcare + Iowa Employer Grants

Send us Fan Mail [https://www.buzzsprout.com/2287432/fan_mail/new] New Mexico just became the first state to offer FREE childcare to everyone. Iowa gave $14M to businesses to figure it out themselves. Which approach actually works? In Episode 16, Greg and Doug break down two radically different approaches to America's childcare crisis after spending a week on the road with employers facing real challenges. What you'll learn: * How New Mexico's $1B universal childcare program works (and why it might fail) * Iowa's $16,000-per-slot business grant model - the math behind it * The distribution center paradox: when workers start at 6AM but daycares can't legally open until 6AM * Why a state chamber told us "even with all our influence, we can't solve this alone" * The "grandparent economy" - unconventional supply solutions that actually work * How one resort company with 4,500 employees admitted they were "designing blind" Key insights: * 76% of C-suite execs say childcare is their #1 workforce barrier * Childcare costs 30% of income in destination communities (federal benchmark: 7%) * New Mexico families save $12,000 per child annually starting November 1st * Iowa needs 48,000 more slots but only created 874 in 3 years Plus: Greg's Disneyland analogy that perfectly captures the supply problem, Doug's take on whether $18/hour is enough for childcare workers, and why they might have a fourth kid if childcare was actually free. Perfect for: HR leaders, benefits professionals, employers struggling with recruitment/retention, and anyone trying to understand how childcare became America's biggest workforce crisis. Support the show [https://www.buymeacoffee.com/taxbreakbreakdown] Thank you for joining us on 'Childcare Tax Break Breakdown'! If you found our deep dive into childcare benefit programs insightful, please consider subscribing for more valuable discussions. For further information, questions, or to share your experiences with childcare benefits, DM Doug or myself here on LinkedIn. Stay tuned for our next episode, where we'll explore more current and upcoming childcare grants and tax programs employers can take advantage of. Don't forget to leave us a review and share this episode with your colleagues. Together, let's make the most of workplace benefits and tax breaks! Disclaimer: This podcast is for informational purposes only and shouldn't be seen as financial or legal advice. Tax rules change and can be complex, so it's always a good idea to check with a professional for your specific needs. We're not responsible for how this information is used.

Episode 14: Why We're Calling BS on Every 'Best Places to Work' List That Ignores This $600K Credit

Send us Fan Mail [https://www.buzzsprout.com/2287432/fan_mail/new] We dive into the enhanced employer-provided child care tax credit hidden in the "One Big Beautiful Bill Act" and why ignoring this opportunity is benefits malpractice for employers seeking to attract and retain talent. • The employer-provided child care tax credit (45F) is increasing from $150,000 to $500,000 for large businesses and $600,000 for small businesses starting January 1, 2026 • Large businesses can now receive 40% back and small businesses 50% back on qualified child care expenditures • The new legislation clarifies that employers can use third-party intermediaries and don't need to build or operate their own facilities • Small businesses can pool resources to implement shared child care programs • Payments must go directly from employer to provider, not through employee accounts • Properly structured benefits can help reduce an employee's annual child care costs from $15,000 to $5,900 with just a $3,000 employer contribution • The program can be stacked with state tax credits, Dependent Care FSAs (now $7,500), and the Child and Dependent Care Tax Credit • Companies have roughly six months to design and implement programs to take advantage of this credit starting in 2026 Support the show [https://www.buymeacoffee.com/taxbreakbreakdown] Thank you for joining us on 'Childcare Tax Break Breakdown'! If you found our deep dive into childcare benefit programs insightful, please consider subscribing for more valuable discussions. For further information, questions, or to share your experiences with childcare benefits, DM Doug or myself here on LinkedIn. Stay tuned for our next episode, where we'll explore more current and upcoming childcare grants and tax programs employers can take advantage of. Don't forget to leave us a review and share this episode with your colleagues. Together, let's make the most of workplace benefits and tax breaks! Disclaimer: This podcast is for informational purposes only and shouldn't be seen as financial or legal advice. Tax rules change and can be complex, so it's always a good idea to check with a professional for your specific needs. We're not responsible for how this information is used.

Episode 13: Backup Care's Big Lie: Why Employers (and Families) Deserve Better

Send us Fan Mail [https://www.buzzsprout.com/2287432/fan_mail/new] In this episode, Greg and Doug discuss the recent developments in backup care and childcare tax credits across Georgia, Missouri, and at the federal level. They explore the implications of these changes for employers and families, the inefficiencies of current backup care programs, and introduce a new model called Care Cash that aims to provide more value to employees. The conversation highlights the need for better alignment between childcare benefits and the actual needs of families. takeaways * Backup care is essential for employees to manage childcare emergencies. * Georgia has introduced a new childcare tax credit to support employers. * Missouri is considering a childcare contribution tax credit to address shortages. * Federal tax credits for childcare are being expanded to provide more support. * Backup care programs often fail to meet the needs of employees in rural areas. * Many employees use out-of-network providers due to lack of local facilities. * Current backup care models can lead to significant financial waste for employers. * The reimbursement rates for out-of-network care are often much lower than expected. * Care Cash is a new model designed to provide direct value to employees. * Employers need to be aware of the complexities of childcare benefits across states. Support the show [https://www.buymeacoffee.com/taxbreakbreakdown] Thank you for joining us on 'Childcare Tax Break Breakdown'! If you found our deep dive into childcare benefit programs insightful, please consider subscribing for more valuable discussions. For further information, questions, or to share your experiences with childcare benefits, DM Doug or myself here on LinkedIn. Stay tuned for our next episode, where we'll explore more current and upcoming childcare grants and tax programs employers can take advantage of. Don't forget to leave us a review and share this episode with your colleagues. Together, let's make the most of workplace benefits and tax breaks! Disclaimer: This podcast is for informational purposes only and shouldn't be seen as financial or legal advice. Tax rules change and can be complex, so it's always a good idea to check with a professional for your specific needs. We're not responsible for how this information is used.

Episode 12: The 2024 Election Impact on Childcare + Programs in West Virginia and Florida

Send us Fan Mail [https://www.buzzsprout.com/2287432/fan_mail/new] Welcome to Episode 12 of the Tax Break Breakdown with your hosts, Greg and Doug. After a few months' hiatus, we're back with some important updates and discussions on childcare tax credits and their implications for both employers and employees. Key Highlights: Personal Update: * Greg's New Baby: Greg shared the exciting news of welcoming his new baby boy, Sawyer, three months ago. He expressed gratitude for the generous paid leave policy at their company, Upwards, which allowed him to take three months off—a stark contrast to the limited leave he had with his first two children. Childcare Crisis: * Ongoing Issues: The childcare crisis remains a significant issue, regardless of political changes. We emphasized the importance of not solely relying on the government to solve this problem and highlighted the need for sustainable models involving multiple stakeholders. Election Impact: * Legislative Shifts: We discussed the potential impacts of the recent election results on childcare policies. While some initiatives like capping childcare spend to 7% of income may face challenges, there is hope for bipartisan support at the state level. State-Level Initiatives: * West Virginia: House Bill 226 established a state-level child and dependent care tax credit, benefiting around 16,000 families. This credit is non-refundable and can reduce tax liability to zero but does not result in a refund. * Florida: Starting October 1st, employers in Florida can apply for tax credits to support childcare facilities or payments. This program offers significant credits, up to $1 million, for creating or maintaining childcare facilities and paying for employee childcare. Practical Insights: * Employer Strategies: We provided practical advice for employers on how to navigate and take advantage of these tax credits. From helping employees find care to implementing prepaid backup care programs, there are various ways to support employees without incurring prohibitive costs. Application Details: * Florida Tax Credit Application: We detailed the application process for Florida's tax credit program, including the necessary information and the cap of $3,600 per eligible child per year. Unused credits can be carried forward for up to five years, and credits can be transferred within affiliated groups. Final Thoughts: * Layering Benefits: We emphasized the importance of layering federal and state benefits to maximize support for childcare. Our company, Upwards, plays a crucial role in helping employers navigate these complex programs. Thank you for tuning in to this episode of the Tax Break Breakdown. We Support the show [https://www.buymeacoffee.com/taxbreakbreakdown] Thank you for joining us on 'Childcare Tax Break Breakdown'! If you found our deep dive into childcare benefit programs insightful, please consider subscribing for more valuable discussions. For further information, questions, or to share your experiences with childcare benefits, DM Doug or myself here on LinkedIn. Stay tuned for our next episode, where we'll explore more current and upcoming childcare grants and tax programs employers can take advantage of. Don't forget to leave us a review and share this episode with your colleagues. Together, let's make the most of workplace benefits and tax breaks! Disclaimer: This podcast is for informational purposes only and shouldn't be seen as financial or legal advice. Tax rules change and can be complex, so it's always a good idea to check with a professional for your specific needs. We're not responsible for how this information is used.