What is the Employer Provider Credit?

The Employer Provider Credit is the Employer tax credit for qualifying Alabama childcare providers. Only those childcare providers who meet the eligibility criteria for the employer credit can receive a refund if the credit amount exceeds their tax liability. The tax credit may be passed to the owners of a pass-through entity based on their pro rata share but cannot otherwise be transferred to any other taxpayer.

To receive a credit, eligible taxpayers must first secure a credit reservation through My Alabama Taxes. At the close of the tax year, taxpayers who received a credit reservation must submit a credit claim substantiating their reservation to be awarded a credit. Only taxpayers who received a credit reservation will be eligible to submit a credit claim.