Active & Expanded (2026)
North Carolina Tri-Share Child Care — Smart Start Network
North Carolina allows a unique combination of a direct state match and an aggressive state tax credit — one of the most powerful stacks in the Southeast.
$1.8M
Annual Funding
3
Regional Hubs
50%
State Tax Credit
100
Counties Covered
Active
Program Status
45F
Federal Credit Available
All
Employers Eligible
⚖️ How the Cost Split Works
Employer Pays
~33%
of total tuition
NC Pays
~33%
Smart Start match
Parent Pays
~33%
of total tuition
North Carolina Pays
~33%
state match
Parent Pays
~33%
of total tuition
📊 The North Carolina Savings Stack
| Benefit Layer | Small Business (<$32M) | Large Business |
|---|---|---|
| NC Tri-Share (Smart Start) | ~$4,000/child/yr | ~$4,000/child/yr |
| NC Employer Tax Credit (50%) | 50% of employer expenses | 50% of employer expenses |
| Federal 45F Credit (2026) | 50% of employer share | 40% of employer share |
| Net Employer Cost | ~$1,000/child/yr | ~$1,200/child/yr |
💰 Real-World Employer Savings
| Cost Component | Without Program | With Smart Stack |
|---|---|---|
| Annual infant care cost (Charlotte) | $13,200 | $13,200 |
| NC Smart Start Match (33%) | $0 | -$4,400 |
| Parent Share (33%) | $0 | -$4,400 |
| Employer Share before credits | $13,200 | $4,400 |
| NC 50% Employer Tax Credit | $0 | -$2,200 |
| Federal 45F Credit (50% of net employer share) | $0 | -$1,100 |
| Net Employer Cost | $13,200 | $1,100/yr |
NC employers save ~92% by stacking Tri-Share + NC 50% Credit + Federal 45F — one of the best stacks in the nation
📋 Available Programs & Incentives
North Carolina HB 259 Employer Tax Credit
State Tax Credit
50% of employer contributions (up to $200K/yr)
Eligibility: All North Carolina employers with qualifying child care expenses
NC Child Care Subsidy (CCAP)
State Subsidy
Sliding-scale co-pay based on income
Eligibility: Families at or below 85% SMI
NC Pre-K
State Program
Free pre-K for at-risk 4-year-olds
Eligibility: North Carolina 4-year-olds at or below 75% 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
NC DCDEE Quality Rating (STAR)
State Program
Quality ratings for child care providers
Eligibility: Licensed North Carolina child care providers
Duo-Share (Employer + Employee)
Employer Benefit
Flexible split — employer covers 25–75%
Eligibility: Any North Carolina employer, no state program required
📍 Geographic Coverage
Tri-Share and employer child care programs are available to employers and families across all cities and counties in this state. Key areas include:
❓ Frequently Asked Questions
HB 259 created a 50% employer tax credit on contributions toward employee child care costs, up to $200,000 per employer per year. This credit can be stacked with the Federal Section 45F Credit.
Yes — North Carolina employers can stack the HB 259 state credit (50%) with the Federal Section 45F Credit (up to 50%). Together, these credits can offset nearly all employer child care contributions.
Charlotte, Raleigh, Greensboro, and Durham have the highest employer participation rates. The HB 259 credit is available statewide to all North Carolina employers.
North Carolina does not have a formal Tri-Share program. However, HB 259 creates a strong employer incentive. We recommend a Duo-Share model — contact us for a free consultation.
North Carolina's Child Care Subsidy (CCAP) serves families at or below 85% of the State Median Income (SMI). Contact NCDHHS for current income thresholds.
NC DCDEE's STAR rating system is North Carolina'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 North Carolina Department of Revenue at ncdor.gov for guidance on claiming HB 259 credits.