Current Arkansas status
Arkansas does not currently operate a state Tri-Share or Act 1435 employer child-care credit. Employers may review the existing DFA employer-provided early-childhood-program credit under ACA §26-51-508 and, separately, may be eligible for the federal Section 45F credit only for qualified expenditures and subject to IRS facility, nondiscrimination, documentation, percentage, cap, and no-double-benefit rules; ABC/CCAP are separate family-focused programs with their own eligibility and availability requirements.
Verified programs and resources
Arkansas employer-provided early-childhood-program credit under ACA §26-51-508
DFA states 3.9% of annual salaries of personnel employed exclusively for child-care services for the business's employees, or $5,000 in the first tax year the business provides an employee child-care facility;
Arkansas Better Chance/ABC and ABC for School Success are real state programs. Current DESE rules support ABCSS for ages 3–4, gross family income at or below 200% FPL, residence in an Arkansas school district, and available space; broader ABC eligibility also includes several non-income risk factors.
Arkansas Better Chance/ABC and ABC for School Success are real state programs.
Federal Section 45F
For qualifying 2026 expenditures, the IRS describes a 40% credit for qualified child-care expenditures, or 50% for an eligible small business, plus 10% for qualified resource-and-referral expenditures. Statutory caps, facility, licensing, employee-access, nondiscrimination, tax-liability and no-double-benefit rules apply.
Frequently asked questions
Arkansas does not currently operate a state Tri-Share or Act 1435 employer child-care credit.
Section 45F is not automatic. The IRS says a taxpayer may be eligible only when it pays or incurs qualified child-care or resource-and-referral expenditures and meets the applicable facility, contract, licensing, employee-access, nondiscrimination, and other statutory requirements. Use Form 8882 to claim the credit and consult a tax professional for the employer’s actual arrangement.
State family-assistance and employer-incentive programs have their own enrollment, funding, provider, income, activity, tax, and documentation rules. Check the official agency links on this page before relying on a benefit or availability.
Official sources
Last Updated: September 27, 2026