Quality Start Louisiana

Businesses

• Quality Start Model
• School Readiness Tax Credits
• FAQs for Businesses

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Businesses

How Your Business Benefits As A Quality Start Supporter.

If your business does work for a Quality Start participating child care center, or supports a center through donations, you may be eligible for important tax benefits. Under the School Readiness Tax Credits program, you could be entitled to a refundable tax credit. The SRTCs are a package of refundable state tax credits designed to support quality child care. Some of these state tax credits are available to businesses and are NOT dependent on whether the business owes state income or corporate franchise taxes. Furthermore, the credits are available for both for-profit and non-profit businesses. There are two types of SRTCs available to businesses/employers: 1) a refundable state tax credit based on a percentage of the “eligible expenses” incurred in support of child care centers participating in Quality Start, and 2) a refundable state tax credit for donations made to child care resource and referral agencies.

Eligible Expenses Include:

1. The construction, renovation, expansion, or major repair of an eligible child care facility, or for the purchase of equipment for such facility, or for the maintenance and operation thereof, not to exceed $50,000 in expenses per tax year; and/or
2. Payments made to an eligible child care facility for child care services to support employees, not to exceed $5,000 per child per tax year; and/or
3. The purchase of child care slots at eligible child care facilities actually provided or reserved for children of employees, not to exceed $50,000 per tax year.

In addition, businesses may receive a dollar-for-dollar refundable tax credit for up to $5,000 for donations made to child care resource and referral agencies.