Active 2026 Tax Credit
Florida Child Care Cost-Sharing & Credits
Florida has launched a50% Employer Child Care Tax Credit (HB 635)with a $1M annual cap. Combined with universal VPK and Federal 45F, Florida employers can achieveup to 100% savingson child care benefits.
2026
Program Year
Active
Program Status
45F
Federal Credit Available
All
Employers Eligible
⚖️ How the Cost Split Works
Employer Pays
~33%
of total tuition
Florida Pays
~33%
state match
Parent Pays
~33%
of total tuition
📊 The Florida Savings Stack
Stack available Florida 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 |
💰 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 |
📋 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 — no state required
📍 Geographic Coverage
Major Cities Served
County Coverage
All 67 Florida counties are eligible for the HB 635 employer tax credit (50%, up to $1M). VPK is available statewide. Contact Florida DCF for enrollment.
❓ Frequently Asked Questions
Florida does not operate a traditional 33/33/33 Tri-Share grant. However, as of 2026, the state offers a50% Employer Child Care Tax Credit (CS/HB 635)that effectively creates a powerful cost-sharing model when combined with Federal 45F.
Starting in 2026, CS/HB 635 provides a state tax credit equal to50% of an employer's contributionstoward employee child care costs, up to$1 Million annually. This applies to both corporate income tax and insurance premium tax.
Yes. The credit covers both the costs of establishing a new child care center and ongoing contributions to licensed providers on behalf of your employees.
Florida's VPK program providesfree preschool for all 4-year-olds. By 2026, it serves nearly 80% of eligible children, making it the primary state-funded cost-sharing mechanism for that age group.
The School Readiness Program provides income-based child care subsidies. In 2026, eligibility has been expanded to reach families up to200% of the Federal Poverty Level, supporting more of your entry-level workforce.
Yes. Florida employers can stack the 50% state credit with the Federal 45F Credit (50% of qualified expenses, max $600,000/year) for up to100% total tax reliefon child care spending.
Florida's Early Learning Coalitions are regional organizations that coordinate child care services. In 2026, they have launched 'Employer Liaisons' in major hubs like Miami and Tampa to help businesses coordinate Duo-Share programs with state VPK and School Readiness funds.
📚 References & Sources
Last Updated: March 1, 2026
📋 Available Programs & Incentives
Florida HB 635 Employer Tax Credit
State Tax Credit
50% of employer contributions (up to $1M/yr)
Eligibility: All Florida employers with qualifying child care expenses
Voluntary Pre-K (VPK)
State Program
Free 540-hour pre-K program for all 4-year-olds
Eligibility: All Florida 4-year-olds
School Readiness Program
State Subsidy
Sliding-scale co-pay based on income
Eligibility: Families at or below 150% FPL
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
Florida Tri-Share Study (2026)
Pending
Legislative study on Tri-Share feasibility
Eligibility: Statewide — results expected 2026
Duo-Share (Employer + Employee)
Employer Benefit
Flexible split — employer covers 25–75%
Eligibility: Any Florida employer, no state program required
❓ Frequently Asked Questions
HB 635 created a 50% employer tax credit on contributions toward employee child care costs, up to $1 million per employer per year. This is one of the most generous employer child care tax credits in the country.
Yes — Florida employers can stack the HB 635 state credit (50%) with the Federal Section 45F Credit (up to 50%). Together, these credits can offset nearly all employer child care contributions.
VPK provides a free 540-hour pre-K program for all Florida 4-year-olds, regardless of family income. It is available at licensed child care centers and public schools statewide.
Jacksonville, Miami, Tampa, Orlando, and Fort Lauderdale have the highest employer participation rates. The HB 635 credit is available statewide to all Florida employers.
Florida is conducting a legislative study on Tri-Share feasibility in 2026. In the meantime, the HB 635 tax credit and School Readiness Program create a strong foundation. Contact us for a Duo-Share consultation.
The School Readiness Program provides subsidized child care for Florida families at or below 150% of the Federal Poverty Level (FPL). It is administered through local Early Learning Coalitions.
File Form F-1120 with your Florida corporate income tax return. Contact the Florida Department of Revenue at floridarevenue.com for guidance on claiming HB 635 credits.