State Policy Choices to Promote Child Care Affordability and Access

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  CCDF Subsidies State Child and Dependent Care Tax Credit
  Income eligibility criteria Cost to family Benefit level Benefit level Benefit level Benefit level
  Earnings limit for 1-parent family of 3 (2007)1 Co-pay as % income, fam of 3, 150% FPL, 1 child in care (2007)13 Providers prohibited from charging additional fees (2005)21 Provider payment rates at least 75th percentile of market rate (2007)23 Refundable (2008)28 Benefit structure (2008)28 Max benefit for family w/ 2 qualifying children (2008)28
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Alabama $20,916/year 10% No No24 No state credit No state credit No state credit
Alaska $46,243/year 1% No No25 No state credit No state credit No state credit
Arizona $27,390/year 7% No No No state credit No state credit No state credit
Arkansas $35,724/year2 5% Yes Yes Yes29 Credit of 20% of federal credit $420/year
California $43,536/year 3% No Yes Yes Credit of 34-50% of federal credit, depending on income $1,050/year
Colorado $21,580-$37,356/year3 11% Yes No Yes Credit of 10-50% of federal credit, depending on income35 $1,050/year42
Connecticut $37,514/year 6% No No No state credit No state credit No state credit
Delaware $34,344/year 18% No No No Credit of 50% of federal credit $1,050/year43
District of Columbia $40,225/year 5% Yes No No Credit of 32% of federal credit $672/year43
Florida $24,900/year 8%14 Yes No No state credit No state credit No state credit
Georgia $26,560/year 9% No No No Credit of 30% of federal credit $630/year43
Hawaii $47,124/year 2% No No Yes Credit of 15-25% of eligible expenses, depending on income $1,200/year
Idaho $20,472/year Not eligible No No No Deduction of eligible expenses36 $468/year43
Illinois $30,396/year 7% No22 No No state credit No state credit No state credit
Indiana $21,084/year Not eligible No Yes No state credit No state credit No state credit
Iowa $24,084/year4 Not eligible15 Yes No Yes Credit of 30-75% of federal credit, depending on income $1,575/year
Kansas $30,708/year 10% No No No Credit of 25% of federal credit $525/year43
Kentucky $24,900/year5 11% No No No Credit of 20% of federal credit $420/year43
Louisiana $31,836/year 11% No No Yes30 Credit of 10-50% of federal credit (but if income exceeds $60,000/year, max benefit is $25); an additional credit of 50-200% of state child care credit claimed for expenses at a child care facility rated two stars or higher by the state quality rating system37 $1,050/year44
Maine $47,200/year 10% Yes Yes Yes31 Credit of 25% of federal credit, increasing to 50% for "quality child care" $903/year45
Maryland $29,990/year 14%16 No No No32 Deduction of eligible expenses; in addition, for tax filers with income of $50,000/year or less, credit of 3.25-32.5% of federal credit, depending on income38 $968/year46
Massachusetts $34,680/year 9% Yes No No Deduction of eligible expenses39 $509/year43
Michigan $23,880/year Not eligible No No No state credit No state credit No state credit
Minnesota $29,050/year 5% No No Yes Credit of 100% of federal credit for claimants with income of $20,420/year or less, up to a maximum benefit of $720 for one qualifying child and $1,440 for two or more; percent of federal credit gradually reduced as income increases, until it hits 0% $1,440/year
Mississippi $34,999/year 6% No No No state credit No state credit No state credit
Missouri $18,216/year Not eligible No No No state credit No state credit No state credit
Montana $24,900/year Not eligible No Yes No Deduction of eligible expenses40 $180/year47
Nebraska $19,932/year6 Not eligible17 Yes No Yes33 Credit of 25-100% of federal credit, depending on income $2,100/year48
Nevada $38,124/year 10% No No No state credit No state credit No state credit
New Hampshire $31,548/year <1% No No No state credit No state credit No state credit
New Jersey $33,200/year 7% No No No state credit No state credit No state credit
New Mexico $25,730/year 6% Yes No26 Yes Credit of 40% of eligible expenses, reduced by amount of federal credit used to offset federal tax liability (w/ max credit of $480 for 1 child, $960 for 2, $1,200 for 3 or more) $960/year49
New York $33,200/year7 12%18 No22 Yes Yes Credit of 20-110% of federal credit, depending on income $2,310/year
North Carolina $35,592/year 10% No Yes No Credit of 7-13% of eligible expenses, depending on age of child in care and income and filing status of claimant $780/year43
North Dakota $29,556/year 15% No No No state credit No state credit No state credit
Ohio $31,764/year 9% Yes No No Credit of 25 or 100% of federal credit, depending on income $2,100/year43
Oklahoma $29,100/year 8% Yes No No Credit of 20% of federal credit $420/year43
Oregon $25,764/year 27% No No Yes Credit of 8-40% of eligible expenses, depending on income None
Pennsylvania $33,200/year 8% No No No state credit No state credit No state credit
Rhode Island $37,350/year8 7%19 Yes No No Credit of 25% of federal credit $525/year43
South Carolina $24,900/year 3% No No No Credit of 7% of eligible expenses $420/year43
South Dakota $34,575/year9 15% No Yes No state credit No state credit No state credit
Tennessee $29,016/year 8% No No No state credit No state credit No state credit
Texas $24,900-$40,347/year3 9-11%20 No No No state credit No state credit No state credit
Utah $30,948/year10 7% No No No state credit No state credit No state credit
Vermont $31,032/year 15% No No27 Yes34 Vermont offers 2 credits: a refundable credit of 50% of the federal credit; and a nonrefundable credit of 24% of the federal $1,050/year34
Virginia $24,900-$41,508/year3 10% No No No Deduction of eligible expenses41 $345/year43
Washington $33,192/year11 7% Yes No No state credit No state credit No state credit
West Virginia $24,144/year 5% Yes No No state credit No state credit No state credit
Wisconsin $31,765/year 9% No Yes No state credit No state credit No state credit
Wyoming $33,120/year12 2% No No27 No state credit No state credit No state credit
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Data Notes & Sources

  1. Karen Schulman and Helen Blank, State Child Care Assistance Policies 2007: Some Steps Forward, More Progress Needed, National Women's Law Center, September 2007.
  2. Figure reflects $100 per month deduction for each working parent.
  3. Limit varies by locality.
  4. If using special needs care, the earnings limit for a one-parent family of three is $33,200 per year.
  5. As of April 1, 2007, the income limit to qualify for assistance in 2007 was increased to $25,764 to adjust for the 2007 federal poverty level.
  6. If transitioning off of TANF, the earnings limit for a one-parent family of three is $30,720 per year.
  7. New York City has a higher income limit than the rest of the state.
  8. In March 2007, the income limit was increased to $38,663 to adjust for the 2007 federal poverty level.
  9. Figure reflects 4 percent disregard of earned income in determining eligibility. The state also increased its stated income limit to $34,344 as of March 1, 2007 to adjust for the 2007 federal poverty level.
  10. Figure reflects monthly standard deduction of $100 ($1,200 a year) for each working parent, assuming there is one working parent in the family.
  11. The state increased its income limit to $34,344 as of April 1, 2007 to adjust for the federal poverty level.
  12. Figure reflects a standard deduction of $200 per month ($2,400 a year) for each working parent, assuming there is one working parent in the family. The state increased its stated income limit to qualify for assistance to $31,776, with a new exit eligibility of $34,344, as of April 1, 2007 to adjust for the 2007 federal poverty level.
  13. If the state calculates co-payments based on the cost of care, figure reflects the co-payment for a 4-year-old in licensed, nonaccredited center care at the maximum state payment rate.
    Karen Schulman and Helen Blank, State Child Care Assistance Policies 2007: Some Steps Forward, More Progress Needed, National Women's Law Center, September 2007.
  14. Co-payments vary by locality. This figure reflects the maximum amount permitted by the state.
  15. If using special needs care, a family of three at 150 percent of poverty would be eligible, with a co-payment that is $198 per month, $2,376 per year, and 9 percent of their income.
  16. Co-payments are based on the maximum state reimbursement rates in the region where the family lives. This figure reflects the copayments in the region of the state with the highest provider rates.
  17. If transitioning off of TANF, a family of three at 150 percent of poverty would be eligible, with a co-payment that is $166 per month, $1,992 per year, and 8 percent of their income.
  18. Co-payments vary by locality based on a state-specified range. This figure reflects the maximum amount possible within that range.
  19. As of March 1, 2007, the monthly copayment was $85 per month, $1,020 per year, and 4 percent of income.
  20. Co-payments are set by localities within state guidelines.
  21. Karen Schulman and Helen Blank, Child Care Assistance Policies 2005: States Fail to Make up Lost Ground, Families Continue to Lack Critical Supports, National Women's Law Center, September 2005.
  22. Additional fees are allowed for vouchers, but not for contracted slots.
  23. States were asked to report state reimbursement rates and the 75th percentile of market rates for their state's most populous city, country, or region. Data reflect basic provider payment rates (higher rates may be available for particular types of care). Rates are considered below the 75th percentile if they are based on an out-dated market rate survey (more than 2 years old).
    Karen Schulman and Helen Blank, State Child Care Assistance Policies 2007: Some Steps Forward, More Progress Needed, National Women's Law Center, September 2007.
  24. Rates vary based on locality, but all areas set rates below the 75 percentile.
  25. Rates vary based on locality and age of child. The percentile at which state rates are set ranges from the zero percentile to the 100th percentile.
  26. Provider payment rates in New Mexico are not set as a percentile of market rates. However, comparison of the state rates to the market rates show that the majority of areas set rates below the 75th percentile.
  27. The state planned to implement new rates effective July 2007.
  28. Nancy Duff Campbell, Joan Entmacher, Amy K. Matsui, Cristina Martin Firvida, and Christie Love, Making Care Less Taxing: Improving State Child and Dependent Care Tax Provisions, National Women's Law Center, 2006; with updates from National Women's Law Center, 2009 Supplement to Making Care Less Taxing, 2006.
  29. Only refundable for care of children under age 6 in an "appropriate early childhood program" approved by the Department of Education.
  30. Only for tax filers with income of $25,000 per year or less.
  31. Maine's credit is refundable up to $500 per year.
  32. Maryland offers a child care deduction and a child care credit (some tax filers may claim both). Both follow federal rules regarding eligible child care expenses and are nonrefundable.
  33. Only for tax filers with income of $29,000 per year or less.
  34. Vermont offers two credits (filers may only claim one): a refundable credit with an maximum benefit of $525 per year for a family with one child ($1,050 per year for two or more) and a nonrefundable credit with a maximum benefit of $252 per year for a family with one child ($504 for two or more).
  35. Percentage may be increased to 70 percent of federal credit for all eligible income levels if there are excess state revenues (this occurred in tax year 2001).
  36. Tax deductions are subtracted from a claimant's income before calculating taxes, while credits are subtracted from the claimant's tax liability after taxes are calculated. Idaho's top tax rate is 7.8 percent.
  37. This rule applies to child care expenses; a nonrefundable credit of 100 percent of the federal credit is allowed for expenses for dependents physically or mentally incapable of self-care.
  38. Tax deductions are subtracted from a claimant's income before calculating taxes, while credits are subtracted from the claimant's tax liability after taxes are calculated. Maryland's top tax rate is 4.75 percent.
  39. Tax deductions are subtracted from a claimant's income before calculating taxes, while credits are subtracted from the claimant's tax liability after taxes are calculated. Massachusetts' top tax rate is 5.3 percent.
  40. Tax deductions are subtracted from a claimant's income before calculating taxes, while credits are subtracted from the claimant's tax liability after taxes are calculated. Montana's top tax rate is 6 percent for tax filers with 1 child, 5 percent for filers with 2 children, and 3 percent for filers with 3 or more children.
  41. Tax deductions are subtracted from a claimant's income before calculating taxes, while credits are subtracted from the claimant's tax liability after taxes are calculated. Virginia's top tax rate is 5.75 percent.
  42. Figure reflects the maximum benefit at 50 percent of federal credit; credit may be increased to 70 percent of federal credit if there are excess state revenues (this occurred in tax year 2001).
  43. The benefit cannot exceed the claimant's tax liability.
  44. Figure reflects the maximum benefit for child care expenses; the maximum benefit for care of dependents physically or mentally incapable of self-care is $1,050 per year for one dependent ($2,100 for two or more).
  45. The refundable benefit is limited to $500 per year.
  46. Figure reflects the maximum benefit for tax filers claiming both the maximum deduction ($143 per year for one child, $285 per year for two or more) and the max credit ($341 per year for one child, $683 per year for two or more); the benefit cannot exceed the claimant's tax liability.
  47. Figure reflects the maximum benefit for a family with two qualifying children; the maximum benefit for a family with three or more children is $144 per year; the benefit cannot exceed the claimant's tax liability.
  48. For tax filers with income above $29,000 per year, the benefit cannot exceed the claimant's tax liability.
  49. Figure reflects the maximum benefit for a family with two qualifying children; the maximum benefit for a family with three or more children is $1,200 per year.