OCF: Credit for Operating Costs of Child-Care Facility (Revision 2025-11)

West Virginia · WV Tax Division · Used for tax years 2026

West Virginia Schedule OCF calculates and claims the credit for operating costs of a child-care facility. It reports operating expenses, amounts paid by employees and non-employees, and current and prior-year credits claimed. Attach this schedule to your West Virginia income tax

Who files this form

Schedule OCF is used to claim West Virginia’s credit for operating costs of a child-care facility. The credit is available to an employer who provides or sponsors child care for employees.

  • Attach Schedule OCF to your West Virginia income tax return every year you claim the credit.
  • If your entity generated a new credit, complete Sections A, B, and C. Complete Section C for each child-care facility.
  • If you purchased or received a transferred credit, you do not need to complete Section C.
  • Pass-through shareholders, partners, members, and beneficiaries complete page 1 and include a K-1 from the entity that generated the credit instead of Section C.

What you'll need

Have the following information and documents ready, as applicable:

  • Business and taxpayer identification, including FEIN, West Virginia tax ID, business name, taxpayer name, address, and tax-period dates. The printed instructions also request a NAICS code.
  • Operating-cost details for salaries and wages, supplies, utilities, and other costs, including a description of other costs.
  • Amounts reimbursed through subsidies, grants, or outside funding, plus amounts paid by employees and non-employees with children at the facility.
  • Prior-year credit information, including tax-period ending dates and amounts acquired, used, sold, and carried over.
  • For Section C: facility identification, monthly enrollment information, employee names and Social Security numbers, numbers of children enrolled, and operating costs covered by each employee.
  • For pass-through claimants: a K-1 from the credit-generating entity.
  • For purchased or transferred credits: the transfer form and Schedule OCF.

The printed instructions warn that all supporting documentation must be attached or the credit will be denied.

How to file

Attach Schedule OCF to your West Virginia income tax return for each year you claim the credit. The supplied text does not give a mailing address or e-file instructions.

  1. Complete the business identification information in Section A. For a purchased or transferred credit, enter the name of the business that earned the credit.
  2. Complete Section B. Add the operating costs on lines 6A through 6D and subtract reimbursements on line 6E. Subtract employee and non-employee payments on lines 7A and 7B, then multiply the result on line 8 by 50%.
  3. Enter the credit claimed this year on line 10 and the applicable prior-year credit information on line 11. Add line 10 and line 11E for line 12. Line 12 may not exceed total tax due.
  4. Include Section C for each facility if your entity generated the new credit. Pass-through claimants use page 1 with a K-1 instead. Purchased or transferred credits do not require Section C.
  5. Complete the signature and contact information and attach the required supporting documents.

For pass-through claims, the credit-generating entity must file Sections A, B, and C with its WV PTE-100. Owners of purchased or transferred credits must include the transfer form and Schedule OCF with their tax return.

Common mistakes

  • Leaving out Schedule OCF: It must be attached to your West Virginia income tax return every year you claim the credit.
  • Missing supporting documentation: The printed instructions say the credit will be denied if required support is not attached.
  • Submitting an incomplete Section C: The entity generating a new credit must complete it in full and submit it with page 1. Purchased or transferred credits do not require Section C.
  • Overlooking the entity’s filing for a pass-through claim: The instructions warn that a shareholder’s credit will be denied if the generating entity has not filed Sections A, B, and C with its WV PTE-100.
  • Claiming more than total tax due: Line 12 may not exceed total tax due.
  • Selling a credit before approval: Credits cannot be sold before the West Virginia Tax Division establishes and approves the credit.

Questions people ask

How is the operating-cost credit calculated?

Add salaries and wages, supplies, utilities, and other operating costs, then subtract reimbursed expenses. Subtract amounts paid by employees and non-employees with children at the facility. The credit on line 9 is 50% of the remaining amount on line 8.

Do I need to complete Section C for a purchased credit?

No. Purchased or transferred credits do not require Section C. Include the transfer form and Schedule OCF with your tax return to claim the credit.

What do pass-through owners submit?

Shareholders, partners, members, and beneficiaries submit page 1 with a K-1 from the entity that generated the credit instead of Section C. The generating entity must file Sections A, B, and C with its WV PTE-100.

Can I sell the credit?

Only after the West Virginia Tax Division establishes and approves it. You will receive a certified letter showing the approved credit and the amount that can be taken annually. Complete a SALE/TRANSFER/ASSIGNMENT OF CREDIT form for each purchaser. The Division does not approve the sale itself; it verifies that the credit sold is available when the new owner files a tax return.

Official sources

All versions of OCF