Employer-Assisted Day Care Tax Credit Worksheet For Tax Year 2007 (Page 2 of 2) in pdf

2007

EMPLOYER-ASSISTED DAY CARE TAX CREDIT

WORKSHEET INSTRUCTIONS

This credit is available to employers who provide or pay for day-care services for their employees. For purposes of this

credit, “employer” means any entity that employs one or more individuals performing services for it within this State. For

a complete deﬁ nition of “employer,” see 26 M.R.S.A. § 1043. The day care services may be provided in-house by the

employer at a nonproﬁ t facility licensed by the Department of Health and Human Services (“DHHS”) or may be in the form

of payment or vouchers for off-site day care services provided by others at a facility licensed by or registered with DHHS.

The allowable credit is equal to the lowest of:

1) $5,000;

2) 20% of the actual costs incurred in providing day-care for children of employees by the employer; or

3) $100 for each child of an employee enrolled on a full-time basis (or for each full-time equivalent) for the entire

taxable year (or on the last day of the taxable year for the ﬁ rst year that services are provided) in a day care

program provided by the employer.

The allowable credit doubles if the day care services provided qualify as “quality child-care.” “Quality child-care” facilities are

certiﬁ ed by DHHS, Ofﬁ ce of Child Care and Head Start. A quality child-care provider is one that meets minimum licensing

standards and is accredited by an independent, nationally recognized program approved by DHHS, Ofﬁ ce of Child Care and

Head Start; utilizes recognized quality indicators for child-care services approved by the Department of Health and Human

Services, Ofﬁ ce of Child Care and Head Start; and includes provisions for parent and client input, a review of the provider’s

policies and procedures, a review of the provider’s program records and an on-site program review. For an application to

become a certiﬁ ed facility or for a list of existing quality child-care facilities, visit our web site at

incomeestate/qualchil.html or call DHHS at (207) 287-5099. The credit is limited to the income tax otherwise due, but any

excess can be carried back 3 years or carried forward 15 years.

SPECIFIC LINE INSTRUCTIONS

Please enter the taxpayer name and social security number (“SSN”) or employer identiﬁ cation number (“EIN”) In the case of

pass-through entities (partnerships, LLCs, S corporations, trusts, etc.), the partners, members, shareholders, beneﬁ ciaries,

etc., are allowed a credit in proportion to their respective interest in these entities. Attach a schedule showing the credit

generated by the pass-through entity and the assignment/distribution to each partner, shareholder, beneﬁ ciary, etc.

Include the name, address, and federal ID number of the pass-through entity and the name and SSN/EIN of each partner,

shareholder, beneﬁ ciary, etc.

Line 1.

Enter the total number of employees’ children that were enrolled full-time (or the number of full-time equivalents

for all enrolled children) for the entire taxable year in day-care services provided by the employer. For example,

two children enrolled in day-care services, each on a half-time basis, would count as one full-time equivalent.

If this is the ﬁ rst year that services are provided, enter the total number of employees’ children that were

enrolled full-time (or the number of full-time equivalents for all enrolled children) on the last day of the taxable

year.

Line 3.

Enter actual costs incurred in providing day-care services to employees’ children for the taxable year.

Line 6.

The amount of the credit doubles for child-care services that are quality child-care services. Child-care facilities

providing quality child-care services are certiﬁ ed by the Maine Department of Health and Human Services,

Ofﬁ ce of Child Care and Head Start. Certiﬁ cates are renewed every 3 years. Any expenses incurred after the

effective date of the certiﬁ cate and before the certiﬁ cate expires are quality child-care expenses. Effective

dates can be obtained from your day-care provider or from the web page listed above. If you enter an amount

paid for quality child-care services on line 6, you must enter the certiﬁ cate number(s) of the quality child-care

facility or facilities in the space provided. You may obtain the certiﬁ cate number from your child-care provider.

The amount on line 6 will be reduced to zero if the certiﬁ cate number is not provided.

Line 10. The credit is limited to the tax liability of the taxpayer, excluding minimum tax. Any unused portion may be

carried back 3 years or carried forward 15 years. Enter any credit carryforward or carryback amounts from

other years on this line.

Line 11. The amount of the credit that may be used by a taxpayer for a taxable year may not exceed the amount of

regular income tax otherwise due. The credit cannot be applied against the alternative minimum tax. For

taxable corporations, the credit limitation is applied on Form 1120ME, Schedule C; the credit limitation for

individuals is applied on Form 1040ME, Schedule A. Any unused credit may be carried over to the following

year or years for a period not to exceed 15 years or it may be carried back for a period not to exceed 3

years.

Employer-Assisted Day Care Tax Credit Worksheet For Tax Year 2007 Page 2

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