States with CDCTCs

Please use our 50-State Resource Map for the latest news, research and policy developments.

State Refundable? Formula Maximum Credit for 1 Child/Dependent Maximum Credit for 2+ Children/Dependents Notes
Arkansas Only for children under 6 in an approved child care facility. 20 percent of federal CDCTC $210 $410 The credit is based on federal law in effect in 2011, so future changes will not affect Arkansas’ credit. The refundable credit is called the Early Childhood Credit.
California No 50 percent of federal CDCTC for incomes of $40,000 or less;
43 percent of federal CDCTC for incomes of $40,001 – $70,000;
34 percent of federal CDCTC for incomes of $70,001 – $100,000		 $525 $1,050 In order to be considered an eligible expense, child/dependent care must be provided in California and meet requirements for the federal CDCTC, except that registered domestic partners may also claim the credit. Filers with income above $100,000 are ineligible.
Colorado Tax filers with federal adjusted gross incomes under $25,000 that are not eligible for the child and dependent care credit under federal law will be able to claim a refundable credit in tax years 2014 through 2016,  equal to 25 % of the tax filer’s child care expenses up to $500 for a single dependent and $1000 for two or more dependents. 50 percent of federal if income is $25,000 or less;
30 percent of federal if income is $25,001 – $35,000;
10 percent of federal if income is $35,001 – $60,000.		 $525 $1,050
Delaware No 50 percent of federal CDCTC $525 $1,050
District of Columbia No 32 percent of federal CDCTC $336 $672
Georgia No 30 percent of federal CDCTC $315 $630
Hawaii Yes 25 percent of eligible expenses if earning $22,000 or less. This percentage is reduced by 1 percent for each additional $2,000 in income up to $40,000.  Filers with income exceeding $40,000 may claim 15 percent of eligible expenses. $600 $1,200 Hawaii’s credit is independent of the federal CDCTC but covers the same expenses as the federal credit, except that expenses are limited to $2,400 for one child/dependent and $4,800 for two children/dependents.
Iowa Yes 75 percent of provided federal CDCTC if income is less than $10,000;
65 percent if income is $10,000 – $19,999;
55 percent if income is $20,000 – $24,999;
50 percent if income is $25,000 – $34,999;
40 percent if income is $35,000 – $39,999;
30 percent if income is $40,000 – $44,999.		 $788 $1,575 While the Iowa credit is refundable, it is based on the federal credit that the tax filer is eligible for, so if the tax filer had no federal tax liability and thus no federal credit, they also have no state credit. Eligible filers may claim either the state CDCTC or the state’s refundable “early childhood development credit,” but a filer eligible for both of these credits will typically find the state CDCTC more valuable.
Kentucky No 20 percent of federal CDCTC $210 $420
Louisiana Yes (if earning $25,000 or less) 50 percent of federal CDCTC if income is $25,000 or less;
30 percent if income is $25,001 – $35,000;
10 percent if income is $35,001 – $60,000;
If income exceeds $60,000, the credit is no more than $25.		 $525 $1,050 Louisiana has two additional credits. One, the School Readiness Credit, is for care of a child under age six at a child care facility rated two stars or higher by the state quality rating system. The credit is also refundable for filers with income below $25,000; the maximum for one child is $1,050, for two or more children $2,100. The second credit is for dependents “physically or mentally incapable of self-care.” It is not refundable; the maximum credit for one child is $1,050, for two or more children $2,100.
Maine Yes, up to $500 25 percent of federal CDCTC; 50 percent of federal CDCTC if expenses are from a care center with a state-issued “Quality Certificate.” $525 $1,050
Maryland No 32.5 percent of federal CDCTC if income is $41,000 or less. The percentage of the federal CDCTC decreases by 3.25 percent for each additional $1,000 of income above $41,000, until income reaches $50,000. There is no credit if income exceeds $50,000. $341 $683
Minnesota Yes 100 percent of federal CDCTC up to $1,400 if income is $25,350 or less. If income exceeds $25,350 the credit is phased out. Filers with income above $39,000 are ineligible. (These amounrs are adjusted for inflation each year.) The credit is capped by the amount the tax filer would have received under federal law prior to 2003. $720 $1,440 Since the maximum state credit is lower than the maximum percentage of the federal credit, the lowest income Minnesota filers do not benefit fully from the improvements to the federal credit in EGTRRA that took effect TY 2003 (but are scheduled to expire after TY 2017).
Nebraska Yes, if income is $29,000 or less 100 percent of federal CDCTC for incomes of $22,000 or less. The credit is reduced by 10 percent for each additional $1,000 up to $29,000. Incomes exceeding $29,000 can claim 25 percent of federal CDCTC (not refundable). $1,050 $2,100
New Mexico Yes 40 percent of qualifying expenses. For filers with federal tax liability, this percentage is reduced by the amount filers’ federal CDCTC offsets federal tax liability.* Filers with income above $30,160 are ineligible. $480 $960 for two children; $1,200 for three or more children In order to qualify, expenses must be from care given in New Mexico for children under age fifteen, up to $8 a day per child, for the gainful employment of the filer. *Because the required offset reduces the value of the credit as the federal CDCTC increases, the improvements to the federal credit in EGTRRA that took effect TY 2003 actually reduce the value of the state credit.
New York Yes 110 percent of federal CDCTC if NY AGI is $25,000 or less (including negative income);
Between 109 and 100 percent if NY AGI is $25,001-$39,999;
phasing down to $64,999;
20 percent if NY AGI is $65,000 or more.		 $1,555 $2,310 Note that New York City has a piggy-back dependent care credit, which is 75% of the state credit for those with incomes under $25,000 and phases out by $30,000.
Ohio No 100 percent of federal CDCTC for incomes less than $20,000;
25 percent for incomes above $20,000 but less than $40,000.
Filers with income of $40,000 or more are ineligible.		 $1,050 $2,100
Oklahoma No 20 percent of federal CDCTC, except that if OK AGI is less than federal AGI, the state credit is prorated based on the ratio of OK AGI to federal AGI. Filers with income above $100,000 are ineligible. $210 $420 Eligible families can claim either 20 percent of the federal Child and Dependent Care Credit or 5 percent of the federal Child Tax Credit, but not both. It is unclear whether expenses for the care of dependents other than children are eligible for the state credit.
Oregon No. (But the Orgeon credit is not limited by the federal credit and any unused credit may be carried forward for up to five years.) 30 percent of expenses allowed for the federal CDCTC if federal taxable income is $5,000 or less;
15 percent if $5,001  – $10,000;
8 percent if $10,001 – $15,000;
6 percent if $15,001 – $25,000;
5 percent if $25,001 – $35,000;
4 percent if $35,001 – $45,000;
Incomes above $45,000 are ineligible.		 $900 $1,800 If the value of this credit exceeds income tax liability, the unused amount may be used against tax liability in subsequent years, for up to five years. Eligible filers may claim both this credit, and the “working family child care” credit, a refundable credit for care expenses, which also varies depending on filer’s income and household size. There is no maximum dollar limit for the “working family child care” credit, which will expire in January 2016 unless extended.
Rhode Island No 25 percent of federal CDCTC $263 $525
South Carolina No 7 percent of eligible expenses. $210 $420 Note that it is 7 percent of eligible expenses, not of the federal credit. Since the state doesn’t vary this percentage inversely with income, this credit doesn’t target the most relief to lower-income filers.
Vermont Yes, for filers with income below $30,000 ($40,000 if married filing jointly or civil partners). Non-refundable: 24 percent of federal CDCTC;
Refundable: 50 percent of federal CDCTC if income is below $30,000 ($40,000 if married filing jointly or civil partners).		 Non-refundable: $252; Refundable: $525 Non-refundable: $504; Refundable: $1,050 Filers who are eligible for both credits cannot  file for both. In order to qualify, expenses must be eligible to claim for the federal CDCTC; expenses eligible for the refundable credit must also be for services provided in a Vermont “registered home or licensed facility certified by the agency of human services as meeting national accreditation or national credential standards endorsed by the agency.” Thus, for families with incomes under $30,000 ($40,000 for married and civil partners), the only tax-payers  who would claim the non-refundable credit would be those with child care facilities that do not meet thise standard.

 

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