Employee Retention with Real Returns
Employers in New York can turn childcare sponsorship into a high-value tax position, with projected returns of up to 168%.
Childcare has always sat on the expense side of the ledger. That’s changing.
BoroughCap helps firms structure participation for maximum tax advantage, with a focus on speed, clarity, and execution.
What employers are looking at
Projected returns of up to 168%
A finance-led opportunity, not a benefits program
Access to qualifying childcare capacity in New York
A clear path from allocation to tax realization
The BoroughCap Difference
Access & Options
Compliance & Protection
Onboarding & Management
Access & Options
Access to the BoroughCap network of daycares, giving your employees more options to choose from
Compliance & Protection
Fully structured and IRS-compliant, with audit-ready documentation to protect your investment and ensure eligibility for tax benefits
Onboarding & Management
Easy, streamlined onboarding and management with a clear, guided process and no headaches
Working directly with a daycare
Access & Options
Limited to a single daycare, no broader network
Compliance & Protection
No structured compliance, no audit protection, and risk of missing or invalid documentation
Onboarding & Management
Manual, inconsistent setup and ongoing management with unnecessary friction and confusion
BoroughCap ROI Calculator
1. Define Participation
Select the number of seats and your contribution per seat.
2. Review the Model
A clear view of total spend, expected return, and timing.
3. Approve & Execute
Onboarding and coordination are put in place to position for tax cycle realization.
Frequently Asked Questions
Financials & Tax Credits
Are there any extra fees on top of what we pay BoroughCap?
Nope. You get one bill that covers the childcare — our cut is already in there, no separate service fee. The bill breaks out what's what so your accountant has what they need at tax time.
How do employers claim the credit?
You’ll get year-end filing reports and data to lower your quarterly estimated payments immediately.
Which tax forms are used?
Federal credits use Form 8882 and flow to Form 3800. In New York, businesses use Form CT-652 or Form IT-652.
Is there a limit to the tax credit?
Yes companies earning more than $31 Million in gross reciepts are capped to $1,000,000 ($500K federal credit and $500K state credit). Small business earning revenue less than $31 Million are capped at $1.1 million ($600K federal credit and $500K state credit).
Eligibility & Compliance
Do you have to include everyone?
You don't have to include everyone, but you cannot favor owners or high-earners.
Can employers or self-employed individuals use this for their own children?
Yes
Can a non-profit benefit?
Generally ineligible unless operating through a C Corp subsidiary.
Do both spouses need to be working?
For the credit your business gets — no, doesn't matter what the spouse does. For the $7,500 tax-free piece on the employee's side — yes, both spouses need income, otherwise the tax-free amount drops to almost half.
Which states are served?
Currently New York (state and federal credits)
Can part-time employees be eligible?
Yes.
Employee Impact
How does this affect the employee's taxes?
The first $7,500 a year per employee is tax-free as long as we've got the right plan paperwork in place — anything over that gets added to their paycheck and taxed like normal wages. We handle the plan setup, the yearly testing, and the W-2 reporting.
Does this mess with an employee's SNAP, Medicaid, or Section 8?
The first $7,500 is tax-free and usually doesn't count as income for these programs. Anything above that goes on the W-2 and counts like regular wages. Rules vary by program and state, so employees should double-check with a benefits caseworker before signing up.
Operations
Can we do this in-house?
Doing this yourself can cost time in payroll and mistakes which can disqualify your credit. BoroughCap and our professional team ensures compliance and payments at no added cost.
Can childcare providers claim this credit for their own employees that get seats?
Providers can only get reimbursed on their costs not the FMV.
What employers are saying
Early partners have found the process clear, structured, and easy to move through.
Ready to realize your up to 168% yield?
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