Active 2026 Grant Pilot
Alaska Child Care Cost-Sharing & Grants
Alaska is investing$5.9 millionin a Child Care Grant Pilot targeting infant and toddler care, while Anchorage redirects$8.2 millionfrom marijuana taxes to child care subsidies.
2026
Program Year
Active
Program Status
45F
Federal Credit Available
All
Employers Eligible
โ๏ธ How the Cost Split Works
Employer Pays
~33%
of total tuition
Alaska Pays
~33%
state match
Parent Pays
~33%
of total tuition
๐ The Alaska Savings Stack
Stack available Alaska programs with the Federal 45F Tax Credit for maximum employer savings.
| Benefit Layer | Small Business (<$32M) | Large Business |
|---|---|---|
| State Program Benefit | Varies by program | Varies by program |
| Federal 45F Credit (2026) | 50% Tax Credit | 40% Tax Credit |
| Net Employer Cost | Significantly Reduced | Significantly Reduced |
๐ฐ Real-World Employer Savings
| Cost Component | Without Program | With State + 45F Stack |
|---|---|---|
| Annual child care cost (per employee) | $12,000 | $12,000 |
| State Program Benefit | $0 | Varies |
| Employee Share | $0 | Reduced |
| Employer Share | $12,000 | Reduced |
| Federal 45F Credit (50% of employer share) | $0 | Significant savings |
| Net Employer Cost | $12,000 | Significantly Lower |
๐ All Available Programs
Federal 45F Tax Credit
Federal Tax Credit
Up to $600,000/year
All U.S. employers
Duo-Share Program
Employer-Employee Split
Flexible cost sharing
All employers โ no state required
๐ Geographic Coverage
Major Cities Served
County Coverage
All Alaska boroughs and census areas are served. The Anchorage Care for Kids pilot covers Municipality of Anchorage. Contact AK DEED for statewide grants.
โ Frequently Asked Questions
Alaska is piloting a$5.9M Child Care Grant (CCG) program(JanuaryโJune 2026) that pays providers directly to stabilize costs. While not a traditional tri-share, when combined with Anchorage's $8.2M "Care for Kids" initiative and Federal 45F credits, Alaska employers have multiple pathways to create effective cost-sharing arrangements.
The CCG Pilot is a$5.9 millionstate investment running JanuaryโJune 2026 that provides supplemental payments of up to$250 per infant monthlydirectly to child care providers. This lowers the baseline cost of care for all families, including those in employer-sponsored programs.
In 2026, the Municipality of Anchorage redirected$8.2 millionfrom marijuana tax revenues specifically to fund direct child care subsidies. Employers in the Anchorage Bowl can partner with the city to "buy down" the cost of care for their staff, effectively creating a local tri-share model.
No. Because Alaska hasno state corporate income tax, incentives are delivered via direct grants to providers (CCG) and local municipality pilots (Anchorage). However, all Alaska employers can claim theFederal Section 45F Credit(up to $600,000/year), which is the primary tax incentive available.
Yes. For 2026, Alaska is moving to comply with federal rules that cap family co-payments at7% of household incomefor subsidized care programs. This ensures affordability for families receiving state assistance.
Alaska has some of the highest child care costs in the nation, with infant care exceeding$15,000 per yearin many areas. However, the 2026 CCG pilot ($250/month infant supplement) and 45F expansion can cover50โ70% of employer costswhen combined with a Duo-Share arrangement.
Yes. The CCG Pilot isstatewide, so Fairbanks providers receive the $250/month infant supplement. Combined with a 50/50 Duo-Share and Federal 45F credits, a Fairbanks employer can reduce their child care benefit costs by nearly 70%.
๐ References & Sources
Last Updated: March 1, 2026
๐ Available Programs & Incentives
Alaska Child Care Grant (CCG) Pilot
State Grant
$250/month infant supplement per child
Eligibility: Employers in participating communities
Anchorage Care for Kids
Municipal Program
$8.2M fund โ up to $500/month per child
Eligibility: Anchorage employers and families
Federal Section 45F Credit
Federal Tax Credit
Up to 50% of employer costs (max $600K/yr)
Eligibility: All U.S. employers with qualifying child care expenses
Alaska Child Care Assistance Program (CCAP)
State Subsidy
Sliding-scale based on income
Eligibility: Families at or below 85% SMI
Duo-Share (Employer + Employee)
Employer Benefit
Flexible split โ employer covers 25โ75%
Eligibility: Any Alaska employer, no state program required
โ Frequently Asked Questions
The CCG Pilot provides $250/month per infant to participating employers in select Alaska communities. The program is funded through the Alaska Department of Education and Early Development (DEED) and is designed to test employer-supported child care models.
Anchorage Care for Kids is an $8.2M municipal fund financed partly through marijuana tax revenue. It provides up to $500/month per child for Anchorage-area employers and families, making it one of the most innovative local programs in the country.
Yes โ all Alaska employers can claim the Federal Section 45F Credit regardless of state program participation. This can cover up to 50% of employer child care contributions, up to $600,000 per year.
Anchorage has the most robust program through Care for Kids. Fairbanks, Juneau, and Wasilla employers can access the statewide CCG Pilot and Federal 45F Credit.
Alaska does not have a formal statewide Tri-Share program yet, but the CCG Pilot and Anchorage model serve as effective alternatives. We recommend a Duo-Share model for Alaska employers outside Anchorage โ contact us for a consultation.
The Alaska Child Care Assistance Program (CCAP) serves families at or below 85% of the State Median Income (SMI). Contact Alaska DEED for current income thresholds.
Contact the Alaska Department of Education and Early Development (DEED) at education.alaska.gov or call their child care division for enrollment information.