The employer play: 45F and cost-share partnerships

Most of this guide points you at grants you apply for. This one is different: it’s about getting a local employer to help fund the families you serve — and thanks to a 2025 tax change, employers now have a real reason to say yes. You don’t apply for these dollars; you pitch them.

What changed: the 45F credit got much bigger

Section 45F is a federal tax credit for employers that provide child care. It used to be small and awkward to use. A 2025 law (P.L. 119-21) expanded it, effective tax year 2026 — meaning it’s live right now:

• Employers can claim 40% of up to $1.2 million in qualified child care expenditures, capped at $500,000.
• Small businesses get an even better deal: 50%, capped at $600,000.
• Crucially, it now allows employers to use third-party intermediaries and jointly owned or operated facilities.

That last change is the one that matters to you. Before, an employer basically had to build its own on-site center. Now an employer can contract with a local licensed provider — or pool with other employers — and still claim the credit. To be clear: you don’t claim 45F. You’re the facility the employer pays. But that credit is your selling point.

How a provider actually uses this

The pitch to a local employer is simple and true: “You want to help your employees with child care and get a large federal tax credit for doing it. I’m a licensed provider. Let’s set up a contract for slots.” The best time to make it is Q3–Q4, before an employer closes its tax planning for the year. Target employers who struggle with turnover and absenteeism — child care is a retention tool they can now write off.

The cost-share model to point them to

If an employer wants a ready-made structure, point them at the tri-share model. Michigan Tri-Share splits the cost of licensed care three ways — ⅓ employer, ⅓ employee, ⅓ state — for households between 200% and 400% of the federal poverty level. For the provider, the appeal is clean: you get paid the full rate through a facilitator hub, so it’s steady enrollment revenue, not a discount you eat. Michigan expanded it in November 2025 with a Care-Share add-on, and other states are adopting tri-share variants — so search “[your state] tri-share child care” to see if yours has one.

Why this belongs in your funding mix

Employer partnerships aren’t a grant window that opens and closes — they’re a relationship you build once that produces stable, full-rate enrollment. Combined with subsidy and the public doors, they’re one of the few funding moves that grows your revenue on an ongoing basis rather than in a one-time lump. Being licensed is the price of entry here too, just like everywhere else — see the licensing gate.