Indiana employers expand childcare benefits to retain staff, warn tax credit’s $2.5M cap could limit help

Employers showcased a range of on-the-job childcare solutions aimed at keeping workers. The Indianapolis Airport Authority, which employs about 500 people, now reimburses up to $10,000 per child annually for after-school care, summer camps and similar costs and says turnover has fallen from roughly 30% to under 10%. Parkview Health, with about 18,000 staff, subsidizes backup care and partners with regional initiatives such as Tri-Share+; Cummins operates employer-run childcare in Columbus that serves 100–150 children daily but faces far higher demand.

Panelists also flagged limits to a state incentive. House Enrolled Act 1177 expanded the employer child care tax credit to firms with up to 500 employees and broadened eligible spending; it allows credits equal to half qualified spending up to $100,000 per employer but the program is subject to a $2.5 million statewide cap and changes were made retroactive to the start of the year. The Department of Revenue says the credit was first available in the 2024 taxable year but has not been claimed; agency staff warned credits are processed in the order returns arrive and acknowledged the risk of the cap is unknown, while the agency reviews options to make claim information more accessible.

BusinessIndy examines this development and its implications for Indiana businesses and communities using the linked sources.