A Smart Investment in Employees, Families and Your Workforce

Louisiana has modernized its child care tax incentives to better connect workforce needs with access to high-quality early care and education.

Beginning in 2026, the former School Readiness Tax Credit is now called the Workforce Child Care Tax Credit, giving employers new opportunities to support working families while strengthening their workforce pipeline.

For businesses, this is more than a tax credit. It is a practical workforce strategy that helps improve employee retention, reduce absenteeism and support long-term economic growth in Jefferson Parish.

Why It Matters for Employers

Access to reliable child care has become a critical workforce issue. When employees have stable child care, businesses benefit from:

• Improved employee retention
• Increased productivity and reliability
• Reduced hiring and training costs
• Stronger workforce participation

The Workforce Child Care Tax Credit allows employers to directly invest in child care solutions that support their teams and their community.

How the Tax Credit Works

This program expands previous tax credits and allows businesses to invest more while receiving larger credits in return.

Tier 1: Support a Child Care Provider

Up to $100,000 credit

Businesses may make direct contributions to qualifying child care centers for:

• Equipment purchases
• Facility repairs or improvements
• Construction, renovation or expansion projects
• Major capital needs

Tier 2: Support Employee Child Care Services

Up to $100,000 credit

Employers can make payments to eligible child care centers to support services that benefit employees and their families.

This gives businesses a flexible way to invest in solutions that help stabilize their workforce.

Tier 3: Purchase Child Care Seats

Up to $10,000 per seat

Employers can help cover child care costs by purchasing seats at eligible child care centers for employees.

This is one of the most direct ways to support working families while improving recruitment and retention.

Quality Matters

Credits are tied to the quality rating of the child care center. Eligible centers must participate in Louisiana’s Quality Start program and hold a 3-, 4-, or 5-star rating, helping ensure businesses are supporting high-quality early learning environments. 

Plan Early

The Workforce Child Care Tax Credit:

• Applies to qualifying investments made in 2026
• Is available on a first-come, first-served basis each year
• Has an annual deadline (currently February 28)

Early planning helps businesses maximize the opportunity.

A Workforce Solution for Jefferson Parish

“As employers continue to compete for talent, access to reliable child care has become a real workforce issue,” said Jerry Bologna, President and CEO of JEDCO. “The Workforce Child Care Tax Credit gives businesses a practical way to support working families while strengthening their workforce pipeline. Awareness is key so companies can plan early and take advantage of this opportunity.”

When employers invest in early care and education, they:

• Support working families
• Strengthen local businesses
• Build a stronger future workforce
• Contribute to regional economic growth

How Jefferson Ready Start Network Can Help

Jefferson Ready Start Network is here to help employers and child care providers understand how the Workforce Child Care Tax Credit works and how it can benefit our community.

We can assist with:

• Employer consultations
• Connecting businesses with eligible child care providers
• Explaining program requirements
• Helping organizations explore partnership opportunities

Ready to Learn More?

Contact Jefferson Ready Start Network to start the conversation about how your business can participate and support working families in Jefferson Parish.