Active: 2026 Tax Credit Expansion
Montana Child Care Cost-Sharing & 50% Credits
Montana has implemented two landmark laws in 2025-2026.HB 648permanently set Best Beginnings eligibility at 185% FPL and capped copays at 9% of income.HB 924created a$2M Employer Launch Grant pool(up to $100,000 per employer). Combined with the expanded50% Federal 45F Credit, Montana small businesses can now achieve near-zero net child care costs.
2026
Program Year
Active
Program Status
45F
Federal Credit Available
All
Employers Eligible
⚖️ How the Cost Split Works
Employer Pays
~33%
of total tuition
Montana Pays
~33%
state match
Parent Pays
~33%
of total tuition
📊 The Montana Savings Stack
Stack available Montana 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 |
📋 Available Programs & Incentives
Montana HB 648 Employer Tax Credit
State Tax Credit
50% of employer contributions (up to $150K/yr)
Eligibility: All Montana employers with qualifying child care expenses
Montana Child Care Assistance Program (CCAP)
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
Montana Stars Quality Rating
State Program
Quality ratings for child care providers
Eligibility: Licensed Montana child care providers
Duo-Share (Employer + Employee)
Employer Benefit
Flexible split — employer covers 25–75%
Eligibility: Any Montana employer, no state program required
📍 Geographic Coverage
Major Cities Served
County Coverage
All 56 Montana counties are eligible for HB 648 + HB 924 tax credits and the $2M employer grant. Contact DPHHS for enrollment.
❓ Frequently Asked Questions
HB 648 created a 50% employer tax credit on contributions toward employee child care costs, up to $150,000 per employer per year. This credit can be stacked with the Federal Section 45F Credit.
Yes — Montana employers can stack the HB 648 state credit (50%) with the Federal Section 45F Credit (up to 50%). Together, these credits can offset nearly all employer child care contributions.
Billings, Missoula, Great Falls, and Bozeman have the highest employer participation rates. The HB 648 credit is available statewide to all Montana employers.
Montana does not have a formal Tri-Share program. However, HB 648 creates a strong employer incentive. We recommend a Duo-Share model — contact us for a free consultation.
Montana's Child Care Assistance Program (CCAP) serves families at or below 85% of the State Median Income (SMI). Contact Montana DPHHS for current income thresholds.
Montana Stars is the state'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.
Contact the Montana Department of Revenue at mtrevenue.gov for guidance on claiming HB 648 credits.
📚 References & Sources
Last Updated: March 1, 2026