How OKC businesses can use the enhanced 45F childcare tax credit

Childcare access has become one of the most pressing workforce challenges in Oklahoma City. The Greater OKC Chamber’s childcare study found that many parents in the metro have had to reduce hours, turn down promotions or even leave their jobs because of limited options. These challenges affect both families and employers. 

Starting Jan. 1, 2026, businesses will have a new tool to help address this issue. The enhanced Employer-Provided Child Care Tax Credit (I.R.C. § 45F) allows employers to claim up to 40% of expenses, capped at $500,000, with an increased benefit of 50% of expenses up to $600,000 for small businesses with gross receipts under $31 million.  

Qualified expenses include childcare facilities, contracted slots, referral services and fees paid to third-party intermediaries. Employers can also pool resources to share costs, making the credit more practical for small and mid-sized businesses. 

For OKC businesses, this incentive connects directly to the workforce concerns highlighted in the Chamber’s study. By using federal tax credits, employers can improve retention, reduce turnover and strengthen support for working parents—without having to operate childcare facilities themselves. 

Employers can claim the credit using IRS Form 8882 and must keep contracts, invoices and licensing records. 

Quick facts from the chamber's 2023 childcare study summary:

• The childcare crisis costs the state of Oklahoma $1.2 billion in lost earnings, productivity and revenue each year. 
• Access to Early Childhood Care and Education (ECCE) programs has become increasingly difficult, creating a childcare crisis in which 55% of Oklahomans, including 68% of rural Oklahomans, live in a childcare desert. 
• The average annual cost for infant care in Oklahoma County is about $11,080, while household income median is about $58,239—making childcare a major expense relative to income. 
• In the last five years, the local market has experienced a 3% reduction in the total number of childcare slots available in Oklahoma County. 

Read the Chamber’s full childcare study: Child Care Study Summary & Action Plan — Greater OKC Chamber.