ABC Great Beginnings — Employer-Sponsored Childcare Tax Credit

Sponsor childcare for your team. Recover up to 80% as a federal tax credit.

The IRS returns up to 80% of what you spend providing childcare to your employees (50% if your annual revenue is over $31M). ABC Great Beginnings handles the rest: contracting, enrollment, billing, and the paperwork your CPA needs to claim the credit.

Built on ABC Great Beginnings’ 14 centers serving families across Davis & Weber, Salt Lake, and Utah counties.

What happens when you book the assessment

No proposal, no pressure. Just the math, specific to your business.

1

30-minute employer assessment

We walk through your team size, working-parent demographics, and what’s realistic for a business your size.

2

Tailored credit estimate

You leave the call with concrete numbers: gross spend, federal ?45F credit, and your net cost after the credit.

3

Implementation timeline

If it’s a fit, most setups are live in 30?60 days. We handle the employer paperwork, employee enrollment, and care delivery.

Three reasons employers hesitate. Each one is already solved.

“It’s too expensive.”

?The ?45F credit covers up to 80% of what you spend (50% if revenue is over $31M). A $6,000/year benefit nets out to about $1,200 per employee.

“We’re too small for this.”

?The ?45F credit applies with as few as one enrolled employee. It scales the same whether you have 3 people or 30.

“It’ll be too complicated to set up.”

?ABC handles contracting, enrollment, billing, and the tax documentation. No setup cost. One invoice per month.

What this looks like for your business

Set your team size and what you’d subsidize per employee. The credit rate is set by your business size under IRC ?45F (updated by the One Big Beautiful Bill Act, July 2025).

Annual company investment
$30,000
Federal tax credit (?45F)
$24,000
Net cost to company
$6,000
Net cost per employee / year
$1,200
Employees feel like
$3.00/hr raise
Company acts like
$0.60/hr cost

More than a tax credit: a workforce stability play

Childcare disrupts work when there’s no backup. When the sitter cancels or family help falls through, your employee misses the day. A center network covers that gap.

85%
of working parents say childcare disruptions cut into their hours or productivity?
$1,640
average annual loss per employee from insufficient childcare?
40%
of working parents have changed jobs to balance childcare with work?
What happens when? Informal care
(sitter, neighbor, in-home daycare)
Center care with ABC
The provider is unavailable Care lapses. Employee misses the day. Backup care is built into the partnership
Hours run long Limited to one person’s schedule Open more hours than any other center in Utah
Commute or location changes Single location, single provider 14 locations across the Wasatch Front
Safety and quality matter Trust-based, varies by provider State-licensed, regularly inspected, comprehensive screening
Want a number tailored to your team? Book a 30-minute employer assessment. We’ll estimate your specific tax credit and outline implementation.
Schedule 30-min discussion

Why ABC is the right local partner

Sponsoring childcare only works if your employees actually use the centers you partner with. ABC’s footprint and standards mean families across the Wasatch Front have a real option, close to home or close to work.

High standards of care

  • State-licensed centers with routine regulatory and internal inspections
  • Comprehensive preschool curriculum included with care
  • State-of-the-art security and screening at every location

14 locations across the Wasatch Front

  • Davis & Weber, Salt Lake, and Utah counties
  • Longer operating hours than any other Utah center
  • Capacity planning that prioritizes employer-sponsored programs

Employer-grade partnership

  • Turnkey contracting. We take the administrative lead.
  • Compliance-ready tax documentation for your CPA
  • Custom benefit design built around your team

How the math works: Federal credit shown reflects IRC ?45F as updated by the One Big Beautiful Bill Act (H.R.1, July 2025). Qualifying small businesses (annual revenue under $31M, indexed) receive up to 80% of qualified childcare expenditures, capped at $600,000/year. Businesses above the threshold receive 50%, capped at $500,000/year. Per-hour figures assume 2,000 work hours per employee per year. Employee tax-free treatment refers to the IRC ?129 exclusion of up to $5,000/year ($2,500 if married filing separately) of qualifying employer-provided dependent care from the employee’s taxable income.

This is an illustration, not tax advice. Actual credit amounts depend on your company’s size, qualified expenditures, and tax situation. Confirm specifics with your tax advisor.

Sources: ? CBS News (2/7/2023), “The child care crisis is costing the economy $122 billion a year.” ? TOOTRiS (4/3/2025), “Employer-Sponsored Child Care Benefits in 2025.”

Are you an employee reading this?

This isn’t just an employer perk. Up to $5,000/year of employer-paid childcare is excluded from your taxable income under IRC ?129, so a $5,000 childcare benefit puts more in your pocket than a $5,000 raise would.

Most small business owners haven’t heard about the ?45F credit yet. Most are open to it once they see the math. Send your boss the page. We wrote a template you can adapt in 30 seconds.

Email template ? copy or send directly:

Subject: An 80% federal tax credit for sponsoring our childcare Hi [Boss], I want to share something I came across that could help with hiring and retention. There’s a federal tax credit for small businesses that sponsor employee childcare. It’s IRC ?45F. Under the One Big Beautiful Bill Act (July 2025), it returns up to 80% of qualified childcare expenditures for businesses with under $31M in annual revenue. It applies even with one enrolled employee. There’s also a ?129 exclusion that makes the benefit tax-free to employees up to $5,000/year. A local provider, ABC Great Beginnings, runs the whole setup: contracts, employee enrollment, billing, and the documentation our CPA would need to claim the credit. No setup cost. They have the math laid out here: https://abcgreatbeginnings.com/employer-tax-credits/ They also offer a free 30-minute assessment for a number specific to our team. Would you be open to a quick look? Thanks, [Your name]
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