Active 2026 Tax Relief & Pilots
Texas Child Care Cost-Sharing & Dallas County Tri-Share Pilot
Texas features the Dallas County $1M Tri-Share pilot (dollar-for-dollar match up to $1,500/year) and SB 1145 property tax exemptions for employer-sponsored child care facilities.
2026
Program Year
Active
Program Status
45F
Federal Credit Available
All
Employers Eligible
βοΈ How the Cost Split Works
Employer Pays
~33%
of total tuition
Texas Pays
~33%
state match
Parent Pays
~33%
of total tuition
π The Texas Savings Stack
Stack available Texas 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 |
π° 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 |
π Available Programs & Incentives
Texas HB 1709 Employer Tax Credit
State Tax Credit
50% of employer contributions (up to $1M/yr)
Eligibility: All Texas employers with qualifying child care expenses
Dallas County Tri-Share Pilot
Regional Tri-Share
Employer/County/Employee cost split
Eligibility: Dallas County employers and families
Texas 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
Texas Rising Star Quality Rating
State Program
Quality ratings for child care providers
Eligibility: Licensed Texas child care providers
Duo-Share (Employer + Employee)
Employer Benefit
Flexible split β employer covers 25β75%
Eligibility: Any Texas employer, no state program required
π Geographic Coverage
Major Cities Served
County Coverage
Dallas County is the primary Tri-Share pilot hub (24 cities). All 254 Texas counties are eligible for the SB 1145 property tax exemption and Federal 45F credit.
β Frequently Asked Questions
HB 1709 created a 50% employer tax credit on contributions toward employee child care costs, up to $1 million per employer per year. This credit can be stacked with the Federal Section 45F Credit.
Dallas County operates Texas's primary Tri-Share pilot, where employers, the county, and employees each contribute approximately one-third of child care costs. See our dedicated Dallas County page for details.
Yes β Texas employers can stack the HB 1709 state credit (50%) with the Federal Section 45F Credit (up to 50%). Together, these credits can offset nearly all employer child care contributions.
Dallas, Houston, San Antonio, Austin, and Fort Worth have the highest employer participation rates. The HB 1709 credit is available statewide to all Texas employers.
Texas has a regional pilot in Dallas County but not a statewide Tri-Share program. HB 1709 provides a strong tax credit alternative for employers statewide. Contact us for a Duo-Share consultation.
Texas's Child Care Assistance Program (CCAP) serves families at or below 85% of the State Median Income (SMI). Contact Texas HHS for current income thresholds.
Contact the Texas Comptroller of Public Accounts at comptroller.texas.gov for guidance on claiming HB 1709 credits.
π References & Sources
Last Updated: March 1, 2026