ERIC Number: ED316312
Record Type: RIE
Publication Date: 1989-Nov
Reference Count: N/A
Employer Tax Credits for Child Care: Asset or Liability? Child Care Action Campaign. CCAC Special Report No. 1: State Financing Alternatives Project.
Euben, Donna; Reisman, Barbara
In its evaluation of the effectiveness of employer tax credits (ETCs), the Child Care Action Campaign (CCAC) examined quantitative data and conducted extensive interviews with over 100 public officials, corporate leaders, financial analysts, and child care advocates in the 13 states with established ETC policies. CCAC also interviewed individuals in states that have considered, but rejected, such initiatives. Findings indicate that ETCs, as currently conceived, may induce a limited pool of employers to offer some kind of child care benefit to employees. But ETCs are presently used by less than 1 percent of eligible employers and have had only a marginal effect on the supply of care. ETCs by themselves are not a panacea. Indeed, they may divert attention from more effective strategies for addressing the child care crisis. Sections of the report discuss: (1) the appeal of ETCs; (2) users of ETCs; and (3) problems with ETCs in terms of policy and corporate experience. It is concluded that ETCs must be reexamined, or they will continue to offer little to employers, employees, state child care delivery systems, and children. Appendices provide a discussion of options and trends in employer-supported child care and CCAC recommendations for a comprehensive U.S. child care policy. CCAC National Advisory Panel members are listed. About 120 references are cited. (RH)
Publication Type: Reports - Evaluative
Education Level: N/A
Authoring Institution: Child Care Action Campaign, New York, NY.