2026 Expansion & Pilots
Maryland Child Care Cost-Sharing & 2026 Scholarships
Maryland is currently utilizing a $14.75M grant to unify its child care system and debating HB 849 to expand scholarship access as of 2026. The state's Fast-Track scholarship gets families care in just 3 business days.
2026
Program Year
Active
Program Status
45F
Federal Credit Available
All
Employers Eligible
⚖️ How the Cost Split Works
Employer Pays
~33%
of total tuition
Maryland Pays
~33%
state match
Parent Pays
~33%
of total tuition
📊 The Maryland Savings Stack
Stack available Maryland 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 24 Maryland counties and Baltimore City are eligible for the $14.75M Unified System Grant and HB 849 employer tax credit. Contact MSDE for enrollment.
❓ Frequently Asked Questions
In 2026, Maryland families can receive a temporary 60-day scholarship in just 3 business days, allowing parents to start work immediately while their full 52-week application is processed.
Maryland currently prioritizes direct family scholarships (CCS) and provider grants over a direct employer state tax credit. However, businesses should leverage the Federal 45F Credit (expanded in 2026) for a 50% return on contributions.
Introduced in February 2026, HB 849 aims to prohibit future enrollment freezes for critical groups including siblings, TCA recipients, and child care workers, stabilizing the Child Care Scholarship system.
In 2026, families earning up to 75% of the State Median Income remain eligible. For a family of four, this threshold is approximately $115,587.
Maryland was awarded a $14.75 million one-year federal grant for 2026 to update its strategic plan and align fragmented early childhood elements into a unified system — a prerequisite for a formal statewide Tri-Share rollout.
A permanent program that provides $450,000 (with bills pending to increase to $900,000) to support local jurisdictions in expanding provider supply across Maryland.
A Duo-Share is a two-way cost-sharing arrangement. With the 2026 45F expansion, a 50/50 Duo-Share is 50% refundable for employers, while the state's Fast-Track CCS ensures new hires have care within 72 hours.
📚 References & Sources
Last Updated: March 1, 2026
📋 Available Programs & Incentives
Maryland HB 849 Employer Tax Credit
State Tax Credit
Employer tax credit on child care contributions
Eligibility: All Maryland employers with qualifying child care expenses
Maryland Unified System Grant ($14.75M)
State Grant
Grants for child care providers and employer partnerships
Eligibility: Maryland employers and licensed providers
Maryland Child Care Scholarship (CCSC)
State Subsidy
Sliding-scale co-pay based on income
Eligibility: Families at or below 85% SMI
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
Maryland EXCELS Quality Rating
State Program
Quality ratings for child care providers
Eligibility: Licensed Maryland child care providers
Duo-Share (Employer + Employee)
Employer Benefit
Flexible split — employer covers 25–75%
Eligibility: Any Maryland employer, no state program required
❓ Frequently Asked Questions
HB 849 created an employer tax credit on contributions toward employee child care costs. Contact the Maryland State Department of Education (MSDE) for current credit rates and eligibility requirements.
The $14.75M Maryland Unified System Grant provides funding for child care providers and employer partnerships statewide. It is designed to expand access to quality child care and support employer-sponsored programs.
Yes — Maryland employers can stack the HB 849 state credit with the Federal Section 45F Credit for maximum savings on employer child care contributions.
Baltimore, Rockville, Gaithersburg, and Annapolis have the highest employer participation rates. All 24 Maryland counties and Baltimore City are eligible.
Maryland does not have a formal Tri-Share program. However, HB 849 and the Unified System Grant create a strong foundation. We recommend a Duo-Share model — contact us for a free consultation.
EXCELS is Maryland's quality rating and improvement system for child care providers. Higher-rated providers receive additional funding and are preferred partners for employer child care programs.
Apply through the Maryland State Department of Education at marylandpublicschools.org or your local Child Care Resource Center. Income eligibility is based on 85% of the State Median Income (SMI).