Does Vermont have a Tri-Share child care program?

Yes. Vermont's Act 76 (2023) created one of the most comprehensive universal cost-sharing systems in the nation. As of 2026, families earning up to 575% of the Federal Poverty Level (approximately $178,000 for a family of four) qualify for subsidized child care.

What is the income limit for Vermont child care assistance?

Vermont's 2026 income limit is 575% of the Federal Poverty Level—approximately $178,000 for a family of four. This is the highest income threshold for child care assistance of any state in the nation.

How does Vermont fund its universal child care system?

Vermont's Act 76 is funded through a payroll tax (0.44% on employees, 0.22% on employers) that generates approximately $125 million annually. This is the dedicated funding stream that makes Vermont's system sustainable.

What is the employer payroll tax rate for Vermont child care?

Employers pay 0.22% of payroll toward Vermont's universal child care fund. This is a mandatory contribution, but employers who also provide direct child care benefits can claim the Federal 45F Credit on those expenditures.

Are there additional Vermont employer child care benefits?

Yes. Vermont employers can stack the mandatory payroll contribution with the Federal 45F Credit on any direct child care expenditures (e.g., subsidized slots, on-site care, or Duo-Share contributions) for additional tax savings.

How much does infant care cost in Burlington, Vermont?

Infant care in Burlington averages $15,000-$18,000 per year. With Vermont's Act 76 subsidy, families earning up to 575% FPL pay a sliding-scale copay, often reducing out-of-pocket costs to under $2,000 per year.

How do I set up a Duo-Share in Vermont?

Vermont employers can layer a Duo-Share on top of the Act 76 subsidy, covering any remaining copay for employees. Combined with the Federal 45F Credit, this can result in zero net cost for the employer while providing a powerful retention benefit.

Active Universal Cost-Sharing

Vermont Child Care Cost-Sharing & Universal Act 76

Vermont's Act 76 is the most expansive child care subsidy system in the nation. Families earning up to 575% FPL (~$178,000) qualify for subsidized care. Employers pay a 0.22% payroll tax to fund the system.

2026

Program Year

Active

Program Status

45F

Federal Credit Available

All

Employers Eligible

How It Works Savings Stack ROI Calculator All Programs Coverage FAQ

⚖️ How the Cost Split Works

🏢

Employer Pays

~33%

of total tuition

🏛️

Vermont Pays

~33%

state match

👨‍👩‍👧

Parent Pays

~33%

of total tuition

📊 The Vermont Savings Stack

Stack available Vermont 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

Vermont Act 76 Employer Tax Credit

State Tax Credit

50% of employer contributions (up to $150K/yr)

Eligibility: All Vermont employers with qualifying child care expenses

Vermont Child Care Financial Assistance Program (CCFAP)

State Subsidy

Sliding-scale co-pay based on income

Eligibility: Families at or below 575% FPL — one of the highest in the US

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

Vermont Child Development Division Programs

State Program

Quality improvement and provider support

Eligibility: Licensed Vermont child care providers

Duo-Share (Employer + Employee)

Employer Benefit

Flexible split — employer covers 25–75%

Eligibility: Any Vermont employer, no state program required

📍 Geographic Coverage

Major Cities Served

BurlingtonSouth BurlingtonRutlandBarreMontpelierWinooskiSt. AlbansNewportVergennesMiddleburyBrattleboroBenningtonSpringfieldMorrisvilleSwantonChittenden CountyRutland CountyWashington CountyFranklin CountyWindham County

County Coverage

All 14 Vermont counties are served under Act 76 universal cost-sharing (up to 575% FPL). Contact DCF for employer partnership enrollment.

❓ Frequently Asked Questions

Act 76 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.

Vermont's Child Care Financial Assistance Program (CCFAP) serves families at or below 575% of the Federal Poverty Level — one of the highest income limits in the country. This means many middle-income families qualify for subsidized child care in Vermont.

Yes — Vermont employers can stack the Act 76 state credit (50%) with the Federal Section 45F Credit (up to 50%). Together, these credits can offset nearly all employer child care contributions.

Burlington, Montpelier, Rutland, and Brattleboro have the highest employer participation rates. Act 76 is available statewide to all Vermont employers.

Vermont does not have a formal Tri-Share program. However, Act 76 and CCFAP create a strong foundation. We recommend a Duo-Share model — contact us for a free consultation.

Vermont's CCFAP serves families at or below 575% of the Federal Poverty Level (FPL) — one of the most generous income limits in the country. Contact Vermont AHS for current income thresholds.

Contact the Vermont Department of Taxes at tax.vermont.gov for guidance on claiming Act 76 credits.

📚 References & Sources

Last Updated: March 1, 2026