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How Can We Use Tax Credits to Finance Early Care and Education? (Word)
By Susan Rohrbough, Gerrit Westervelt , Eds.
January 2003

Summary: This session topic from the conference on Early Care and Education Finance Reform, January 2003, describes the use of tax credits to finance early care and education. It is indicated that tax credits are a piece of the finance puzzle, but are not generous enough to be the chief finance mechanism. There are 4 kinds of credits: (1) child care credits that help pay for child care; (2) per child credits, regardless of child care; (3) employer credits encourage employers to invest in child care; and (4) donation credits reimburse philanthropic contributors to child care. Tax credit programs in Colorado, Oregon, and New York are described. Recommended strategies are outlined (e.g., an employee flexible spending approach, promotion of dependent care tax credit). It is easier and faster to change an existing credit than to introduce a new credit.

Index Terms: Early Childhood Education, Financing Strategies, Tax Credits, States

Publisher: National Technical Assistance Center

Publication Type: Conference papers

Pages: 3 pages
Language: English
URL: http://www.earlychildhoodfinance.org/handouts/TaxCredits/IssueBrief.doc

Availability
National Technical Assistance Center
c/o Smart Start - North Carolina Partnership for Children
1100 Wake Forest Road, Suite 300
Raleigh, North Carolina 27604
919-821-7999
http://www.smartstart-nc.org/

 
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