Erin McGreehan
Ceist:40. Deputy Erin McGreehan asked the Tánaiste and Minister for Finance if he is exploring the potential of a tax credit for childcare; and if he will make a statement on the matter. [48386/26]
Amharc ar fhreagraThursday, 25 June 2026
Ceisteanna (40)
Freagraí scríofa
The Government acknowledges the cost pressures on families and parents with young children and the cost of childcare. In recognition of these pressures, several support measures are already in place to ease the burden on working parents. Budget 2026 allocated €1.48 billion to Early Learning and Childcare, an increase of €125 million, including €594 million for the national childcare scheme and €480 million for core funding.
The following tax measures are provided to assist with offsetting the costs of early learning and childcare:
• The Accelerated Capital Allowances scheme for Childcare Services encourages employers to develop childcare facilities onsite for their employees. It allows for 100 per cent wear and tear allowances in respect of the capital expenditure incurred on childcare equipment for the year in which the equipment is first used. An accelerated industrial buildings annual allowance of 15 per cent over 6 years and 10 per cent in year 7 can also be claimed for capital expenditure incurred on the construction of a childcare services facility.
• Individuals who provide child-minding services in their own home may claim childcare services relief each year, provided that they do not receive more than €15,000 income per annum from the child-minding income.
A Single Person Child Carer tax credit of €1,900 is available as well as an additional standard rate band of €4,000. Subject to meeting the relevant conditions, this credit and increased rate band is payable to a single person with a child under 18 years of age or if over 18 years of age in full time education or permanently incapacitated. The primary claimant may relinquish this credit and increase in the rate band to a secondary claimant with whom the child resides for not less than 100 days in the year.
As with all taxation matters, these measures kept under review as part of the budgetary process.