What is the recapture of the Employer-Provided Child Care Facilities Credit?
You may have to recapture part or all of the credit if:
- Before the 10th tax year after the tax year in which your qualified childcare facility is placed in service, the facility ceases to operate as a qualified childcare facility or
- There is a change in ownership of the facility. However, a change in ownership will not require recapture if the person acquiring the interest in the facility agrees, in writing, to assume the recapture liability.
