Active 2026 Tax Credit Expansion
Oregon Child Care Cost-Sharing & Beaver Stack
Oregon's SB 467 (2026) proposes a Tri-Share pilot in Multnomah, Washington, and Lane Counties. The Baby Promise program bypasses the ERDC waitlist for newborns. Employers can act now with a Duo-Share and Federal 45F Credit.
2026
Program Year
Active
Program Status
45F
Federal Credit Available
All
Employers Eligible
⚖️ How the Cost Split Works
Employer Pays
~33%
of total tuition
Oregon Pays
~33%
state match
Parent Pays
~33%
of total tuition
📊 The Oregon Savings Stack
Stack available Oregon 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
Oregon HB 3005 Employer Tax Credit
State Tax Credit
50% of employer contributions (up to $2.5M/yr)
Eligibility: All Oregon employers with qualifying child care expenses
Oregon Employment-Related Day Care (ERDC)
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
Oregon Spark Quality Rating
State Program
Quality ratings for child care providers
Eligibility: Licensed Oregon child care providers
Duo-Share (Employer + Employee)
Employer Benefit
Flexible split — employer covers 25–75%
Eligibility: Any Oregon employer, no state program required
📍 Geographic Coverage
Major Cities Served
County Coverage
All 36 Oregon counties are eligible for the SB 467 Tri-Share pilot and ERDC. Contact ODE for the Baby Promise bypass enrollment.
❓ Frequently Asked Questions
HB 3005 created a 50% employer tax credit on contributions toward employee child care costs, up to $2.5 million per employer per year. This is one of the most generous employer child care tax credits in the country.
Yes — Oregon employers can stack the HB 3005 state credit (50%) with the Federal Section 45F Credit (up to 50%). Together, these credits can offset nearly all employer child care contributions.
Portland, Salem, Eugene, and Gresham have the highest employer participation rates. The HB 3005 credit is available statewide to all Oregon employers.
Oregon does not have a formal Tri-Share program. However, HB 3005 creates a strong employer incentive. We recommend a Duo-Share model — contact us for a free consultation.
Oregon's Employment-Related Day Care (ERDC) program serves families at or below 85% of the State Median Income (SMI). Contact Oregon DHS for current income thresholds.
Spark is Oregon'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 Oregon Department of Revenue at oregon.gov/dor for guidance on claiming HB 3005 credits.
📚 References & Sources
Last Updated: March 1, 2026