Louisiana Child Care and School Readiness Tax Credits¶
Louisiana child care tax relief for families and child care-related workers and businesses, including the regular Louisiana child care expense credit and School Readiness Tax Credits for families with young children in quality-rated child care.
Louisiana offers School Readiness Tax Credits in addition to the regular Louisiana child care expense credit. For families, the school readiness child care expense credit applies to taxpayers with a qualified dependent under age six who attended a child care facility participating in the quality rating program with at least two stars. The credit is a percentage of the regular Louisiana child care expense credit: 50% for two-star, 100% for three-star, 150% for four-star, and 200% for five-star facilities. The credit is refundable for taxpayers with federal AGI of $25,000 or less; for higher AGI taxpayers it is nonrefundable with excess credit carried forward up to five years. Louisiana also offers refundable School Readiness credits for eligible child care directors and staff, child care providers serving foster children or Child Care Assistance Program children, and businesses supporting quality child care.