Tax Credit

Any individual or company with an Oregon state tax liability is eligible to contribute.

An individual or company can contribute in two ways:

1. Make a cash donation by completing the Child Care Contribution Tax Credit Form.
2. Make a stock contribution by completing the Child Care Contribution Tax Stock Contribution Form.

All funds are deposited in the state Child Care Fund, managed by the Office of Child Care within the Early Learning Division, and annually distributed.

You are entitled to a federal income tax deduction for your gift. The deduction is the fair market value of the stock you donated, which is based on the average price of the stock on the day that the shares are settled at the State Street Bank. The State Street Bank will calculate the fair market value of your gift and report that amount to the Office of Child Care. We recommend you confirm the number with your tax advisor.

Yes, the Office of Child Care, who manages the program, has an account within the Oregon State Treasury at the State Street Bank & Trust. For assistance, please call Sandy Gorsage at 503-947-3121 or email sandy.a.gorsage@state.or.us.

In order for the Office of Child Care to accept the stock, we must authorize our broker to accept the transaction. Either you or your broker will need to contact Sandy Gorsage at 503-947-3121 or email sandy.a.gorsage@state.or.us and provide the information on the Child Care Contribution Stock Contribution Form.

The Office of Child Care will compute your allowable tax credit and give you a certificate. Enter the tax credit amount from the certificate on the ‘other credits’ line on your tax return along with the tax credit code 705. Your charitable contribution to the Child Care Fund can also be claimed as a deduction on your federal tax return. If you itemize your deductions for Oregon, you cannot claim both the federal charitable contribution and the Oregon tax credit.

If you claim your entire Child Care Fund contribution as an itemized deduction on your federal Schedule A, you must add back the amount of the credit to Oregon income as an ‘other addition’ on your Oregon personal or corporate tax return.

Example: Fern made a contribution to the Child Care fund in the amount of $10,000. On her Oregon return she will claim a credit of $5,000 for her contribution (she is limited to 50 percent of her contribution, or her tax liability, in any given year). If Fern claims the $10,000 contribution as an itemized deduction on her federal Schedule A, she must add back the amount of the credit ($5,000) to her Oregon income as an ‘other addition.’

If you need to request a refund for your contributions, please complete and submit the Child Care Contribution Tax Refund Form.

The Oregon Employer Provided Dependent Care Tax Credit has sunset as of December 31, 2015. The Early Learning Division will no longer issue certificates starting with tax year 2016. The Early Learning Division does not give tax advice and we encourage individuals to speak to an accountant or tax consultant for more information.