Active & 50% Tax Credits
West Virginia Child Care Cost-Sharing & 2026 Tax Credits
West Virginia features an active Tri-Share pilot and a 50% State Child Care Tax Credit. HB 4072 and SB 646 are reforming and expanding the program in 2026.
2026
Program Year
Active
Program Status
45F
Federal Credit Available
All
Employers Eligible
⚖️ How the Cost Split Works
Employer Pays
~33%
of total tuition
West Virginia Pays
~33%
state match
Parent Pays
~33%
of total tuition
📊 The West Virginia Savings Stack
Stack available West Virginia 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
West Virginia HB 4007 Employer Tax Credit
State Tax Credit
50% of employer contributions
Eligibility: All West Virginia employers with qualifying child care expenses
West Virginia 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
West Virginia CLIMB Quality Rating
State Program
Quality ratings for child care providers
Eligibility: Licensed West Virginia child care providers
Duo-Share (Employer + Employee)
Employer Benefit
Flexible split — employer covers 25–75%
Eligibility: Any West Virginia employer, no state program required
📍 Geographic Coverage
Major Cities Served
County Coverage
All 55 West Virginia counties are eligible for HB 4072 and SB 646 (50% employer tax credit). Contact DHHR for enrollment.
❓ Frequently Asked Questions
HB 4007 created a 50% employer tax credit on contributions toward employee child care costs. This credit can be stacked with the Federal Section 45F Credit for significant savings.
Yes — West Virginia employers can stack the HB 4007 state credit (50%) with the Federal Section 45F Credit (up to 50%). Together, these credits can offset nearly all employer child care contributions.
Charleston, Huntington, Morgantown, and Parkersburg have the highest employer participation rates. The HB 4007 credit is available statewide.
West Virginia does not have a formal Tri-Share program. However, HB 4007 creates a strong employer incentive. We recommend a Duo-Share model — contact us for a free consultation.
West Virginia's Child Care Assistance Program (CCAP) serves families at or below 85% of the State Median Income (SMI). Contact WVDHHR for current income thresholds.
CLIMB is West Virginia'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 West Virginia State Tax Department at tax.wv.gov for guidance on claiming HB 4007 credits.
📚 References & Sources
Last Updated: March 1, 2026