Employer-Assisted Day Care Tax Credit Worksheet

2011

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 MRSA § 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 DHHS, 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 or

call DHHS at (207) 287-9300. The credit is limited to the income tax otherwise due, but any excess can be carried back 3

years or carried forward 15 years.

In the case of pass-through entities (partnerships, LLCs, S corporations, trusts, etc.), the partners, members, shareholders,

beneﬁ ciaries or other owners are allowed a credit in proportion to their respective interest in these entities.

SPECIFIC LINE INSTRUCTIONS

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

Line 1.

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

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) 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 DHHS, 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 claimed but unused from the past 15 years

or carryback amounts from other years on this line.

Lines 12-14. The amount of the credit may not exceed the amount of regular income tax otherwise due. The credit cannot

be applied against the alternative minimum tax. 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.

Rev. 2/12

Employer-Assisted Day Care Tax Credit Worksheet - 2011 Page 2

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