IT-652: Employer-Provided Childcare Credit (2025)
New York · NY DTF · Used for tax years 2025
Form IT-652 is used to claim New York’s Employer-Provided Childcare Credit. It calculates the credit for qualified childcare facility and resource and referral expenditures, and reports shares of credit and recapture received from partnerships, New York S corporations, estates, o
Who files this form
Form IT-652 is used to claim the Employer-Provided Childcare Credit. The form covers:
- Individuals (sole proprietors), partnerships, and fiduciaries of estates or trusts that earned the credit.
- Partners, shareholders of New York S corporations, and estate or trust beneficiaries who received a share of the credit or credit recapture.
All filers must complete line A to indicate whether they earned the credit directly rather than receiving a share from another entity.
What you'll need
Have the information needed for the schedules that apply to you:
- Your name and identifying number as shown on your return.
- For childcare facility expenditures: each qualified facility’s physical address and the qualified expenditures paid or incurred.
- For childcare resource and referral expenditures: each employee’s first and last name, work location ZIP code (first five digits), Social Security number, and qualified expenditures paid or incurred.
- For a share received from another entity: the entity’s name, type, EIN, and your share of credit and recapture.
- For fiduciary allocations: beneficiaries’ names and identifying numbers, plus their shares of credit and recapture.
- For recapture calculations: the federal recapture amount on New York property, the federal credit originally allowed on that property, and the New York credit originally allowed.
How to file
Submit Form IT-652 with Form IT-201, IT-203, IT-204, or IT-205.
Complete line A, then follow the schedule directions:
- If Yes: Individuals (sole proprietors) and partnerships complete Schedules A and D. Fiduciaries complete Schedules A, C, and D.
- If No: Complete Schedules B and D. Fiduciaries also complete Schedule C.
- If applicable: Complete Schedule E for credit recapture.
For recapture, report the line 25 amount as follows:
- Individuals, partners, S corporation shareholders, and beneficiaries: use code 652 on Form IT-201-ATT, line 20, or Form IT-203-ATT, line 19.
- Partnerships: use code 652 on Form IT-204, line 148.
- Fiduciaries: include the amount on Form IT-205, line 12.
The supplied form does not provide a mailing address or e-filing directions.
Common mistakes
- Leaving line A blank: The form says all filers must complete it.
- Using more than five ZIP code digits: Schedule A, Part 2 asks for only the first five digits of employees’ work location ZIP codes.
- Using a different beneficiary name: Schedule C requires the beneficiary’s name to match Form IT-205, Schedule C.
- Rounding the recapture ratio incorrectly: Schedule E, line 20 requires the result to be carried to four decimal places.
Questions people ask
What credit rates does the form use?
Schedule A uses 50% for qualified childcare facility expenditures and 20% for qualified childcare resource and referral expenditures.
Is there a limit on the credit calculated in Schedule A?
Yes. Schedule A, line 8 lists a $500,000 limit. Line 9 is the smaller of the combined credit on line 7 or that limit.
Where do I report a credit share received from another entity?
Use Schedule B. Enter the entity’s name, type, EIN, and your share of credit and recapture. Use P for a partnership, S for an S corporation, or ET for an estate or trust.
Can I include amounts from additional forms?
Yes. Schedules A, B, and C include spaces for totals from additional forms.