Creation of the family tax credit for businesses funding childcare for their employees

Article 98 of the 2004 Finance Act creates Article 244 quater F of the General Tax Code. Businesses taxed on actual profits receive a tax credit equal to 25% of expenses for creating and running childcare facilities for their employees' children under three, training employees on parental leave, paying employees on family leave and reimbursing exceptional childcare costs. The credit is capped at EUR 500,000 per business and is offset against income tax or corporate tax, with any excess refunded. It applies to expenses incurred from 1 January 2004; Decree No. 2004-844 of 20 August 2004 sets the implementing rules.