New federal tax incentive makes it easier for employers to invest in child care solutions
that support employees and strengthen retention and productivity
LAKE OSWEGO, Ore. – [August 25, 2025] – KinderCare Learning Companies, Inc.
(NYSE: KLC) (“KinderCare”), a leading provider of high-quality early childhood
education, welcomes the expansion of the Employer-Provided Child Care Tax Credit, a
policy change that enables more organizations to claim significant tax incentives for
providing or supporting child care solutions for their employees.
Congress’s decision to nearly triple the tax credit represents the most substantial
enhancement of this provision in decades. Employers can now recoup up to 40% of
qualified expenses (50% for eligible small businesses) for child care benefits for their
workforce incurred on or after January 1, 2026.
This expansion acknowledges the clear connection between employer-sponsored child
care and business success. When employees have reliable, affordable access to care,
they are more engaged, productive, and loyal to their organizations. By reducing the
financial barriers to providing these benefits, the new tax credit empowers more
companies to invest in solutions that strengthen both their workforce and their bottom
line.
“Supporting child care access and affordability is one of the most effective ways
employers can strengthen their teams and foster a more productive, engaged
workforce,” said Paul Thompson, CEO of KinderCare Learning Companies. “Today, we
work with employers across the country to provide flexible, tailored child care solutions
that meet the unique needs of their workforce. This expansion makes it even easier for
organizations to invest in their employees’ well-being, because when working parents
have reliable care, families thrive, and workplaces do too.”
According to data from KinderCare’s 2025 CHRO Perspectives Survey, 84% of HR
leaders reported growing interest in employer-sponsored child care as a critical
workforce strategy.
KinderCare is uniquely positioned to help organizations maximize the benefits of the
new tax credit through its portfolio of customized child care solutions, including:
- On-site and near-site centers for employer locations nationwide
- Tuition benefits for care at KinderCare’s 2,500 programs in 41 states
- Backup care services offering drop-in, on-demand care
- Priority access to center enrollment, including guaranteed seats at high-demand
locations
- Before- and after-school programs for elementary students, on-site or at
nearby locations
For more information about KinderCare’s employer offerings and how to claim your
credit, please visit this link.
About KinderCare Learning Companies™
A leading provider early childhood and school-age education and care, KinderCare builds
confidence for life in children and families from all backgrounds. KinderCare supports
hardworking families in 41 states and the District of Columbia with differentiated flexible child
care solutions to meet today’s dynamic work environment:
- In neighborhoods, with KinderCare® Learning Centers that offer early learning
programs for children six weeks to 12 years old;
- In The Crème de la Crème™ School, which offers a premium early education model
using a variety of enrichment classrooms; and
- In local schools, with Champions® before- and after-school programs.
KinderCare partners with employers nationwide to address the child care needs of today’s
dynamic workforce. We provide customized family care benefits for organizations, including
care for young children on or near the site where their parents work, tuition benefits, and backup
care where KinderCare programs are located.
Headquartered in Lake Oswego, Oregon, KinderCare operates more than 2,600 early learning
centers and sites. To learn more, visit KC-Learning.com.