Child care business B&O tax exemption

Intended audience: Child care providers.

Effective Oct. 1, 2024, there is a new business and occupation (B&O) tax exemption for certain child care services. This exemption expires Dec. 31, 2034.

Who qualifies?

Businesses primarily (more than 50%) engaged in providing child care.

What is exempt?

Amounts received for providing care and supervision for a period of less than 24 hours to children that are either:

• Under 13 years of age.
• Under 19 years of age with a verified special need or under court supervision as determined by the department of children, youth, and families under chapter 43.216 RCW.

How do I claim the B&O tax exemption?

You must report the amounts received under the Child Care B&O tax classification and then take a deduction under “Child Care for Children Under 13, Under 19 with Verified Special Need or Under Court Supervision.”

More information

See RCW 82.04.2905.

See our Child care industry guide for other deductions or exemptions that may apply.

Questions

Please contact us online or call 360-705-6705