Current Vermont status
Vermont has an active statewide CCFAP subsidy administered by the Department for Children and Families; current March 22, 2026 guidelines extend to 575% FPL, with eligibility and family shares determined by the state's rules. Vermont also collects a 0.44% employer Child Care Contribution (employers may withhold up to 0.11% from employees). Vermont does not have a verified formal state Tri-Share/Duo-Share employer program or verified state employer child-care credit in the sources reviewed. Employers considering a private benefit should obtain tax advice; federal Section 45F may apply only to qualifying expenditures and eligible taxpayers under IRS rules.
Verified programs and resources
Vermont CCFAP is active and statewide in scope, subject to an accepted service need, regulated care, Vermont residency, current income guidelines, and the asset limit; the March 22, 2026 table reaches 575% FPL.
Vermont CCFAP is active and statewide in scope, subject to an accepted service need, regulated care, Vermont residency, current income guidelines, and the asset limit;
Act 76 is enacted law and expanded CCFAP eligibility over time; it is not documented by the official sources reviewed as creating a formal Vermont Tri-Share or Duo-Share employer program.
Act 76 is enacted law and expanded CCFAP eligibility over time;
Vermont Child Care Contribution is active from July 1, 2024
employers pay 0.44% of wages subject to Vermont withholding and may withhold no more than 0.11% from employee wages.
Federal Section 45F
For qualifying 2026 expenditures, the IRS describes a 40% credit for qualified child-care expenditures, or 50% for an eligible small business, plus 10% for qualified resource-and-referral expenditures. Statutory caps, facility, licensing, employee-access, nondiscrimination, tax-liability and no-double-benefit rules apply.
Frequently asked questions
Vermont has an active statewide CCFAP subsidy administered by the Department for Children and Families; current March 22, 2026 guidelines extend to 575% FPL, with eligibility and family shares determined by the state's rules.
Section 45F is not automatic. The IRS says a taxpayer may be eligible only when it pays or incurs qualified child-care or resource-and-referral expenditures and meets the applicable facility, contract, licensing, employee-access, nondiscrimination, and other statutory requirements. Use Form 8882 to claim the credit and consult a tax professional for the employer’s actual arrangement.
State family-assistance and employer-incentive programs have their own enrollment, funding, provider, income, activity, tax, and documentation rules. Check the official agency links on this page before relying on a benefit or availability.
Official sources
Last Updated: September 27, 2026