DCS-Datatax

Tax Credit for Businesses That Provide Childcare for Employees – Did You Know?

Businesses that offer childcare services to employees may qualify for the Employer-Provided Childcare Tax Credit for some of the expenses involved. Eligible costs may include acquisition or construction of a childcare facility, ongoing expenses to run an in-house daycare center, and/or referral costs like contracting with an outside childcare facility or service.

This nonrefundable credit may cover up to 25% of qualifying workplace childcare facility costs, or 10% of costs for an outside service, up to a maximum of $150,000. Eligible businesses may claim the credit as part of the General Business Credit, meaning that any excess credit amount may be carried back one year or forward up to 20 years. A business tax professional can help you determine whether your enterprise qualifies for the Employer-Provided Childcare Tax Credit, and if so, help you get the maximum benefit from the credit.

New Requirements for Energy Efficiency Credits Take Effect in 2025 – Did You Know?

The IRS offers a variety of tax credits to people who invest in home improvements that significantly reduce energy usage. These nonrefundable credits may total up to $3,200 for a particular year. A maximum credit of $2,000 is available for water heaters, heat pumps, boilers or biomass stoves that meet specific design and efficiency requirements. Meanwhile, qualifying homeowners may claim up to $1,200 in credits for other energy improvements like installing highly efficient exterior doors, windows or skylights.

Beginning January 1, 2025, only officially certified products will be eligible for these tax credits. The products must come from an IRS-approved manufacturer, and the manufacturer must label each product with a unique product identification number (PIN). Save these labels, because in order to claim a home efficiency credit, you will need to include the PIN of each eligible product on your 2025 tax return. If a contractor or retailer cannot show you a clearly displayed PIN on a particular product, then the product likely will not qualify for tax credits for energy efficiency.

Taxes can be scarier than any Halloween monster, but with us here to help you face them fearlessly. 🎃 Reach out to us today for a consultation—no tricks, just solid tax advice!