LBMC Partners with TQEE to Help Tennessee Employers Maximize Expanded Child Care Tax Credits

Partnership turns federal workforce solution into actionable business strategy

NASHVILLE, Tenn., Sept. 17, 2026 (GLOBE NEWSWIRE) -- LBMC, one of the Southeast's largest accounting and business consulting firms, has stepped into a critical Gap : helping Tennessee employers Connect Group their workforce strategy with a powerful tax tool. LBMC has been named Tennesseans for Quality Early Education's (TQEE's) official 45F Tax Credit Advisory Partner, positioning the firm to guide employers through newly expanded federal incentives for employer-provided child care. While Tennessee employers increasingly recognize that child care affects recruitment, retention, and productivity, many don't know how to turn that awareness into Action or how the expanded 45F credit can finance their solution.

Effective for the 2026 tax year, changes to Internal Revenue Code Section 45F significantly increase federal tax credits available to businesses that provide or support child care for their employees. The maximum annual credit increased from $150,000 to $500,000, or $600,000 for eligible small businesses. The credit rate for qualified facility expenditures increased from 25% to 40%, or 50% for eligible small businesses.

"Child care is not just an HR issue - it's a business strategy issue," said Jim Meade, CEO and Managing Shareholder of LBMC. "Employers lose talent when child care falls apart. The expanded 45F credit gives businesses a financial tool to invest in their workforce while addressing a real Tennessee need. As TQEE's official 45F Tax Credit Advisory Partner, LBMC bridges the Gap between workforce planning and tax planning so employers can make real progress on this critical issue."

Why LBMC's Partnership with TQEE Matters for Tennessee Employers

"Employers have many options to make a meaningful difference for their workforce," said Blair Taylor, president and CEO of Tennesseans for Quality Early Education. "What we found across Tennessee is that while there is no one-size-fits-all answer, there is an on-ramp for almost every budget. The opportunity is to find the solution that fits your workforce, your community and your budget."

The timing of this partnership is strategic. TQEE's 2026 report documents 26 Tennessee employers already leveraging child care as a competitive workforce advantage. LBMC brings specialized tax expertise to this equation, helping employers model the financial impact of their child care investments and maximize available federal credits - knowledge many employers lack. For employers considering new or expanded child care support, the substantial expansion of the 45F credit changes the business case entirely.

Expanded Credit Gives Employers More Options

Employers do not have to build and operate their own child care center to Benefit from Section 45F. The expanded rules give employers more flexibility in how they structure qualifying child care support. Qualifying expenses now include:

• Costs to build, acquire, expand or rehabilitate a qualified child care facility
• Operating costs for an employer-supported child care facility
• Amounts paid under contracts with qualified child care providers
• Arrangements with third-party intermediaries that Connect Group employers with child care providers
• Costs associated with jointly owned child care facilities
• Child care resource and referral services that help employees locate and access care

"This is where tax planning and workforce strategy work together," Meade continued. "An employer might establish a partnership with an existing provider, fund resources and referral services, contribute to a shared facility, or take another approach entirely. Bringing LBMC's tax advisors into the planning process early helps businesses identify the structure that makes sense for their organization, understand the potential tax savings, and avoid costly missteps."

Helping Tennessee Employers Take Action

As TQEE's official 45F Tax Credit Advisory Partner, LBMC provides specialized guidance to employers considering child care investments. LBMC's 45F tax advisors assist with:

• Evaluating proposed child care expenditures for eligibility under Section 45F
• Modeling expected federal tax benefits and potential credit amounts
• Assessing different child care arrangements from a tax perspective
• Understanding credit requirements, limitations, and documentation obligations
• Preparing for IRS Form 8882 filing and compliance

Section 45F is a nonrefundable credit and is part of the general business credit. Unused credit may generally be carried back one year and carried forward for up to 20 years. Employers must also account for requirements including nondiscrimination rules, fair market value limitations and applicable basis reductions.

For businesses considering new or expanded child care support, reviewing Section 45F during the planning stage can help identify qualifying costs, estimate potential tax savings and inform decisions about which workforce solution best fits the organization.

To speak with an LBMC 45F Tax Advisor or schedule a no-cost assessment, visit LBMC's Employer-Provided Child Care Tax Credit resource page or reach out to our 45F Team at 45fadvisors@lbmc.com.

About LBMC

LBMC is one of the Southeast's largest accounting and business consulting firms and a nationally recognized top 35 firm serving approximately 14,000 clients with diverse needs across a Spectrum of industries. Primary client groups include privately owned and private equity-backed middle-market companies in the healthcare, manufacturing/distribution, real estate, and technology spaces. LBMC leverages advanced business intelligence and AI technologies to drive growth, efficiency, and strategic insights for our clients. Founded in 1984 as a traditional accounting firm, LBMC today is an industry leader in audit, tax, advisory, technology, human resources, and wealth advisory services for businesses and individuals. LBMC has more than 1,000 Team members, with offices in Nashville, Chattanooga, Knoxville, and Memphis, Tennessee; Louisville, Kentucky; Charlotte, North Carolina; Philadelphia, Pennsylvania; Chennai, India (a subsidiary of LBMC); and a dedicated Remote Office supporting clients nationwide. For more information on LBMC's experts and comprehensive services, visit our website or call 615-377-4600. Discover career opportunities and learn more about how LBMC's services and culture can support your business goals. Connect Group with us on LinkedIn for the latest insights on talent, client engagement, and business growth.

About Tennesseans for Quality Early Education

Tennesseans for Quality Early Education (TQEE) is a statewide nonprofit organization dedicated to ensuring Tennessee's youngest learners, birth through third grade, get the quality early care and education they need to power the state's future. TQEE's Tennessee Business + Family Forum works with employers across the state to identify child care and other family-friendly workplace solutions that fit their workforce and budget.

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• LBMC partners with TQEE to help Tennessee employers maximize expanded child care tax credits

CONTACT: Suzanne Reed
LBMC
6153092282
suzanne.reed@lbmc.com