Active Pilots & 2026 Expansion
Washington Child Care Cost-Sharing & 2026 Pilots
Washington launched DCYF Workforce Pilots in Pierce and Snohomish Counties in 2026. WCCC eligibility now reaches 85% SMI (~$105,500 for a family of 4).
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
Washington Pays
~33%
state match
Parent Pays
~33%
of total tuition
π The Washington Savings Stack
Stack available Washington 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
Washington HB 1732 Employer Tax Credit
State Tax Credit
50% of employer contributions (up to $2M/yr)
Eligibility: All Washington employers with qualifying child care expenses
Washington Working Connections Child Care (WCCC)
State Subsidy
Sliding-scale co-pay based on income
Eligibility: Families at or below 60% 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
Washington Early Achievers Quality Rating
State Program
Quality ratings for child care providers
Eligibility: Licensed Washington child care providers
Duo-Share (Employer + Employee)
Employer Benefit
Flexible split β employer covers 25β75%
Eligibility: Any Washington employer, no state program required
π Geographic Coverage
Major Cities Served
County Coverage
Pierce and Snohomish counties are the primary DCYF pilot hubs. All 39 Washington counties are eligible for the 85% SMI subsidy and Federal 45F credit.
β Frequently Asked Questions
HB 1732 created a 50% employer tax credit on contributions toward employee child care costs, up to $2 million per employer per year. This is one of the most generous employer child care tax credits in the country.
Yes β Washington employers can stack the HB 1732 state credit (50%) with the Federal Section 45F Credit (up to 50%). Together, these credits can offset nearly all employer child care contributions.
Seattle, Spokane, Tacoma, and Bellevue have the highest employer participation rates. The HB 1732 credit is available statewide to all Washington employers.
Washington does not have a formal Tri-Share program. However, HB 1732 creates a strong employer incentive. We recommend a Duo-Share model β contact us for a free consultation.
Washington's Working Connections Child Care (WCCC) program serves families at or below 60% of the State Median Income (SMI). Contact DSHS for current income thresholds.
Early Achievers is Washington'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 Washington Department of Revenue at dor.wa.gov for guidance on claiming HB 1732 credits.
π References & Sources
Last Updated: March 1, 2026