Childcare tax credit for young children raised from 25% to 50%

Article 79 of the 2006 Finance Act raises from 25% to 50% the rate of the tax credit for the cost of childcare outside the home (nursery, approved childminder, day care) for dependent children under six, provided by Article 200 quater B of the General Tax Code. Expenses remain capped at €2,300 per child, giving a maximum credit of €1,150 per child. The rate applies to expenses incurred from 1 January 2006, hence to tax on 2006 income paid in 2007. The 50% rate is still in force; the expense ceiling was raised to €3,500 in 2023.