Form 8882
(Rev. December 2017)
Department of the Treasury
Internal Revenue Service
Credit for Employer-Provided Childcare
Facilities and Services
Attach to your tax return.
Go to www.irs.gov/Form8882 for the latest information.
OMB No. 1545-1809
Attachment
Sequence No.
131
Name(s) shown on return Identifying number
1 Qualified childcare facility expenditures paid or incurred . . . . . 1
2 Enter 25% (0.25) of line 1 . . . . . . . . . . . . . . . . . . . . . . . . . 2
3 Qualified childcare resource and referral expenditures paid or incurred 3
4 Enter 10% (0.10) of line 3 . . . . . . . . . . . . . . . . . . . . . . . . . 4
5
Credit for employer-provided childcare facilities and services from partnerships, S corporations,
estates, and trusts . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
6 Add lines 2, 4, and 5 . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
7
Enter the smaller of line 6 or $150,000. Estates and trusts, go to line 8. Partnerships and S
corporations, stop here and report this amount on Schedule K. All others, stop here and report this
amount on Form 3800, Part III, line 1k . . . . . . . . . . . . . . . . . . . . .
7
8 Amount allocated to beneficiaries of the estate or trust (see instructions) . . . . . . . . .
8
9 Estates and trusts. Subtract line 8 from line 7. Report this amount on Form 3800, Part III, line 1k . . 9
General Instructions
Section references are to the Internal Revenue Code
unless otherwise noted.
Purpose of Form
Employers use Form 8882 to claim the credit for qualified
childcare facility and resource and referral expenditures.
The credit is part of the general business credit. You may
claim the credit any time within 3 years from the due date
of your return on either an original or amended return.
Taxpayers, other than partnerships, S corporations,
estates, or trusts, whose only source of this credit is from
those pass-through entities, are not required to complete
or file this form. Instead, they can report this credit
directly on Form 3800.
How To Figure the Credit
The credit is 25% of the qualified childcare facility
expenditures plus 10% of the qualified childcare resource
and referral expenditures paid or incurred during the tax
year. The credit is limited to $150,000 per tax year.
Qualified childcare expenditures are amounts paid or
incurred:
• To acquire, construct, rehabilitate, or expand property
that:
1. Is to be used as part of a qualified childcare facility of
the taxpayer,
2. Is depreciable (or amortizable) property, and
3. Is not part of the principal residence of the taxpayer
or any employee of the taxpayer;
• For the operating expenses of a qualified childcare
facility of the taxpayer, including expenses for training of
employees, scholarship programs, and providing
increased compensation to employees with higher levels
of childcare training; or
• Under a contract with a qualified childcare facility to
provide childcare services to employees of the taxpayer.
Note. Any expenses for childcare included in qualified
childcare facility expenditures may not exceed the fair
market value of such care.
A qualified childcare facility is a facility that meets the
requirements of all applicable laws and regulations of the
state or local government in which it is located, including
the licensing of the facility as a childcare facility. The
following conditions must also be met.
• The principal use of the facility must be to provide
childcare (unless the facility is also the personal residence
of the person operating the facility).
• Enrollment in the facility must be open to employees of
the taxpayer during the tax year.
• If the facility is the principal trade or business of the
taxpayer, at least 30% of the enrollees of the facility must
be dependents of employees of the taxpayer.
• The use of the facility (or the eligibility to use the facility)
must not discriminate in favor of highly compensated
employees.
Qualified childcare resource and referral expenditures
are amounts paid or incurred under a contract to provide
childcare resource and referral services to employees of
the taxpayer. The provision of the services (or the
eligibility to use the services) must not discriminate in
favor of highly compensated employees.
For Paperwork Reduction Act Notice, see instructions.
Cat. No. 33436Y
Form 8882 (Rev. 12-2017)
Form 8882 (Rev. 12-2017)
Page 2
No Double Benefit Allowed
You must reduce:
• The basis of any qualified childcare facility by the
amount of the credit on line 7 allocable to capital
expenditures related to the facility,
• Any otherwise allowable deductions used to figure the
credit by the amount of the credit on line 7 allocable to
those deductions, and
• Any expenditures used to figure any other credit by the
amount of the credit on line 7 allocable to those
expenditures (for purposes of figuring the other credit).
Note. For credits entered on line 5, only the pass-through
entity is required to make this reduction.
Recapture of 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. See section 45F
(d) for details.
Any recapture tax is reported on the line of your tax
return where other recapture taxes are reported (or, if no
such line, on the “total tax” line). The recapture tax may
not be used in figuring the amount of any credit or in
figuring the alternative minimum tax.
Member of Controlled Group or Business
Under Common Control
For purposes of figuring the credit, all members of a
controlled group of corporations (as defined in section 52
(a)) and all members of a group of businesses under
common control (as defined in section 52(b)), are treated
as a single taxpayer. As a member, figure your credit for
lines 2 and 4 as follows:
• Figure your credit for line 2 based on your proportionate
share of qualified childcare facility expenditures giving
rise to the group’s credit for line 2. Enter your share of
the credit on line 2. Attach a statement showing how
your share of the credit was figured, and write “See
Attached” next to the entry space for line 2.
• Figure your credit for line 4 based on your proportionate
share of qualified resource and referral expenditures
giving rise to the group’s credit for line 4. Enter your share
of the credit on line 4. Attach a statement showing how
your share of the credit was figured, and write “See
Attached” next to the entry space for line 4.
Specific Instructions
Line 8
Estates and trusts. Allocate the credit for employer-
provided childcare facilities and services on line 7
between the estate or trust and the beneficiaries in the
same proportion as income was allocated, and enter the
beneficiaries’ share on line 8.
If the estate or trust is subject to the passive activity
rules, include on line 5 any credit for employer-provided
childcare facilities and services from passive activities
disallowed for prior years and carried forward to this year.
Complete Form 8582-CR, Passive Activity Credit
Limitations, to determine the allowed credit that must be
allocated between the estate or trust and the
beneficiaries. For details, see the Instructions for Form
8582-CR.
Paperwork Reduction Act Notice. We ask for the
information on this form to carry out the Internal Revenue
laws of the United States. You are required to give us the
information. We need it to ensure that you are complying
with these laws and to allow us to figure and collect the
right amount of tax.
You are not required to provide the information
requested on a form that is subject to the Paperwork
Reduction Act unless the form displays a valid OMB
control number. Books or records relating to a form or its
instructions must be retained as long as their contents
may become material in the administration of any Internal
Revenue law. Generally, tax returns and return
information are confidential, as required by section 6103.
The time needed to complete and file this form will vary
depending on individual circumstances. The estimated
burden for individual and business taxpayers filing this
form is approved under OMB control number 1545-0074
and 1545-0123 and is included in the estimates shown in
the instructions for their individual and business income
tax return. The estimated burden for all other taxpayers
who file this form is shown below.
Recordkeeping .. . . . . . . . . . 2 hr., 37 min.
Learning about the law or the form . . . . 30 min.
Preparing and sending
the form to the IRS . . . . . . . . . . . .34 min.
If you have comments concerning the accuracy of
these time estimates or suggestions for making this form
simpler, we would be happy to hear from you. See the
instructions for the tax return with which this form is filed.