# Ark. Code Ann. § 26-51-507: Employer-provided child care - As qualified under former section 26-52-401 - Definition > Arkansas · Statutes · In force URL: https://www.frixlaw.com/law-library/statutes/STATE_AR_T26_C51_S5_S26-51-507 ## Section - **Citation:** Ark. Code Ann. § 26-51-507 - **Heading:** Employer-provided child care - As qualified under former section 26-52-401 - Definition - **Jurisdiction:** Arkansas - **Kind:** Statutes - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** AR Code / Title 26 / Chapter 51 / Subchapter 5 / Section 26-51-507 ## Text (a) A business which qualifies for the exemption from the gross receipts tax under former § 26-52-401(29) shall be allowed an income tax credit of three and nine-tenths percent (3.9%) of the annual salary of employees employed exclusively in providing childcare services. (b) If two (2) or more businesses participate in a childcare program for their employees as provided by former § 26-52-401(29) , then each business will be allowed an income tax credit of three and nine-tenths percent (3.9%) of the annual salary of only those employees who are on the respective business' payroll and are employed exclusively for providing childcare services. (c) (1) To qualify for the income tax credit, the revenue to the business or businesses from the childcare facility cannot exceed the direct operating costs of the facility. If, on an annual basis, the childcare facility receives revenue which exceeds the direct operating costs of the facility, the business or businesses will not be entitled to the income tax credit. (2) As used in this section, "direct operating costs" means: (A) The cost of food and beverages provided to the children; (B) The cost of labor for personnel whose services are performed exclusively on the premises of the childcare facility for the care of the children and all related employment taxes paid by the employer; and (C) All materials and supplies necessary to operate the childcare facility. (d) The income tax credit created by subsection (a) of this section shall first be available in the taxable year following the year the business makes payment of wages to childcare workers. To the extent that the credit is not fully utilized in this first year, it may be carried forward for an additional two (2) years. Any credit remaining thereafter shall expire. (e) The income tax provisions of this section shall be in full force and effect for all income tax years beginning on and after January 1, 1993. Acts 1993, No. 820, §§ 3, 4; 1993, No. 987, §§ 3, 4; 1995, No. 850, §§ 6, 7. (a) A business which qualifies for the exemption from the gross receipts tax under former § 26-52-401(29) shall be allowed an income tax credit of three and nine-tenths percent (3.9%) of the annual salary of employees employed exclusively in providing childcare services. (b) If two (2) or more businesses participate in a childcare program for their employees as provided by former § 26-52-401(29) , then each business will be allowed an income tax credit of three and nine-tenths percent (3.9%) of the annual salary of only those employees who are on the respective business' payroll and are employed exclusively for providing childcare services. (c) (1) To qualify for the income tax credit, the revenue to the business or businesses from the childcare facility cannot exceed the direct operating costs of the facility. If, on an annual basis, the childcare facility receives revenue which exceeds the direct operating costs of the facility, the business or businesses will not be entitled to the income tax credit. (2) As used in this section, "direct operating costs" means: (A) The cost of food and beverages provided to the children; (B) The cost of labor for personnel whose services are performed exclusively on the premises of the childcare facility for the care of the children and all related employment taxes paid by the employer; and (C) All materials and supplies necessary to operate the childcare facility. (1) To qualify for the income tax credit, the revenue to the business or businesses from the childcare facility cannot exceed the direct operating costs of the facility. If, on an annual basis, the childcare facility receives revenue which exceeds the direct operating costs of the facility, the business or businesses will not be entitled to the income tax credit. o operate the childcare facility. (1) To qualify for the income tax credit, the revenue to the business or businesses from the childcare facility cannot exceed the direct operating costs of the facility. If, on an annual basis, the childcare facility receives revenue which exceeds the direct operating costs of the facility, the business or businesses will not be entitled to the income tax credit. (2) As used in this section, "direct operating costs" means: (A) The cost of food and beverages provided to the children; (B) The cost of labor for personnel whose services are performed exclusively on the premises of the childcare facility for the care of the children and all related employment taxes paid by the employer; and (C) All materials and supplies necessary to operate the childcare facility. (A) The cost of food and beverages provided to the children; (B) The cost of labor for personnel whose services are performed exclusively on the premises of the childcare facility for the care of the children and all related employment taxes paid by the employer; and (C) All materials and supplies necessary to operate the childcare facility. (d) The income tax credit created by subsection (a) of this section shall first be available in the taxable year following the year the business makes payment of wages to childcare workers. To the extent that the credit is not fully utilized in this first year, it may be carried forward for an additional two (2) years. Any credit remaining thereafter shall expire. (e) The income tax provisions of this section shall be in full force and effect for all income tax years beginning on and after January 1, 1993. Acts 1993, No. 820, §§ 3, 4; 1993, No. 987, §§ 3, 4; 1995, No. 850, §§ 6, 7. ## Nearby sections - [Ark. Code Ann. § 26-51-501 Personal tax credits - Definitions](https://www.frixlaw.com/law-library/statutes/STATE_AR_T26_C51_S5_S26-51-501.md) - [Ark. Code Ann. § 26-51-502 Household and dependent care services - Definitions](https://www.frixlaw.com/law-library/statutes/STATE_AR_T26_C51_S5_S26-51-502.md) - [Ark. Code Ann. § 26-51-503 Support of a child with a developmental disability - Definitions](https://www.frixlaw.com/law-library/statutes/STATE_AR_T26_C51_S5_S26-51-503.md) - [Ark. Code Ann. § 26-51-504 Income from sources outside Arkansas - Definition](https://www.frixlaw.com/law-library/statutes/STATE_AR_T26_C51_S5_S26-51-504.md) - [Ark. Code Ann. § 26-51-505 Establishment or expansion of manufacturing enterprise - Definitions](https://www.frixlaw.com/law-library/statutes/STATE_AR_T26_C51_S5_S26-51-505.md) - [Ark. Code Ann. § 26-51-506 Tax credit for waste reduction, reuse, or recycling equipment - Eligibility - Definitions](https://www.frixlaw.com/law-library/statutes/STATE_AR_T26_C51_S5_S26-51-506.md) - [Ark. Code Ann. § 26-51-507 Employer-provided child care - As qualified under former section 26-52-401 - Definition](https://www.frixlaw.com/law-library/statutes/STATE_AR_T26_C51_S5_S26-51-507.md) - [Ark. Code Ann. § 26-51-508 Employer-provided child care - As qualified under section 26-52-516 or section 26-53-132 - Definition](https://www.frixlaw.com/law-library/statutes/STATE_AR_T26_C51_S5_S26-51-508.md) - [Ark. Code Ann. § 26-51-509 Apprenticeship program - Definition](https://www.frixlaw.com/law-library/statutes/STATE_AR_T26_C51_S5_S26-51-509.md) - [Ark. Code Ann. § 26-51-511 Coal mining, producing, and extracting - Definitions](https://www.frixlaw.com/law-library/statutes/STATE_AR_T26_C51_S5_S26-51-511.md) - [Ark. Code Ann. § 26-51-512 Rice straw tax credit - Definitions](https://www.frixlaw.com/law-library/statutes/STATE_AR_T26_C51_S5_S26-51-512.md) - [Ark. Code Ann. § 26-51-513 Arkansas historic rehabilitation income tax credit](https://www.frixlaw.com/law-library/statutes/STATE_AR_T26_C51_S5_S26-51-513.md) - [Ark. Code Ann. § 26-51-514 [Repealed]](https://www.frixlaw.com/law-library/statutes/STATE_AR_T26_C51_S5_S26-51-514.md) - [Ark. Code Ann. § 26-51-515 Work on cold cases by retired law enforcement officers](https://www.frixlaw.com/law-library/statutes/STATE_AR_T26_C51_S5_S26-51-515.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_AR_T26_C51_S5_S26-51-507. Check the current official text before relying on it. Not legal advice.