State tax rules apply. Child care providers also may not involuntarily furlough employees employed on the date of submission of the application. Retaining documentation to support each expenditure (i.e. For example, a shared framework might involve using a common provider subgrant application, developing a shared model for estimating child care provider operating expenses and setting subgrant amounts, and coordinating outreach to eligible child care providers. Lead Agencies have the option to continue serving the child until the next eligibility redetermination, and may establish eligibility periods longer than 12 months. Return to Top Application Process To learn more about how to apply, please view our Application Guide or Application Walk Through Video on our website available in English, Spanish, and Vietnamese. Children do not need to be formally involved with child protective services or the child welfare system in order to be considered eligible for CCDF assistance under this category. Afterwards it costs $99.00 a year. You cant deduct your mortgage payment, but you can deduct your Time-Space% of mortgage loan interest and you can depreciate your home to account for mortgage principal. A: It will depend on your personal finances. Can I put it on my 2021 tax return? Purchase of a swim spa for physical therapy, exercise, relaxation? Stabilization Grants For example, if the funding were used to cover rent, and if that did not affect a recipients net income, then the funding would not affect WIC eligibility. If a lead agency chooses to provide stabilization subgrants to child care providers that are not licensed, regulated, or registered and have not previously received child care subsidies but are otherwise eligible to receive CCDF, for example relative providers, lead agencies are encouraged to collect additional details and documentation of operating expenses. Major renovations (which are not allowable) include: Minor building updates or maintenance to the facility and/or grounds that do not change the fundamental structure of the building or alter the function or purpose of the facility (which are allowable). Effective July 2022, the CCSG Workforce Amount is awarded to recipients of the CCSG who certify they will use the amount for personnel costs including payroll/wage supplements, bonuses, and employee benefits. Please remove any contact information or personal data from your feedback. EEC will work with programs in determining what would be acceptable documentation to support the expending of grant funds and help programs determine how to start collecting this documentation as they use grant funds. For example, if an application was submitted such that the first month of the grant is September, they would need to recertify at the beginning of October. CCDF funds, including supplemental funds, cannot be used to cover tuition or copayments for families that are not eligible to receive CCDF child care subsidies. And while many child care providers have opened back up, its been anything but easy. These grants, funded with federal stimulus funding through the American Rescue Plan Act, began in September 2021 and are available to eligible child care providers through . . Further, expenses incurred by the intermediaries that are not part of the subgrant (i.e., passed through to an eligible child care provider) will count against the set-aside of either up to 10 percent for states and territories or up to 20 percent for tribal lead agencies. States determine which sources to count as income, unless a statute authorizing funding specifically imposes a requirement to include or exclude funds. The provider will provide relief from copayments and tuition payments for the families enrolled in the providers program, to the extent possible, and prioritize such relief for families struggling to make either type of payment. The EITC phases in with earnings and phases out with the greater of earnings or AGI. Funding for the grants comes from the American Rescue Plan Act. A: Colorado says they encourage providers to give 50% to parents. Further, providers caring for infants must be aware of, and responsive to, parents who choose to breastfeed while their child is in care (e.g., by making arrangements such as providing space specifically for this purpose). Furthermore, for family child care providers, whether the child care stabilization funding counts as income also depends on whether it is used as income by the family child care provider who receives it. The remaining funds may be used for administering the subgrants, providing technical assistance and support for applying for and accessing these subgrants, publicizing the availability of these subgrants, carrying out activities to increase the supply of child care, and providing technical assistance to help child care providers meet certain policies. Under 45 CFR 98.67(a), Lead Agencies shall expend and account for CCDF funds in accordance with their own laws and procedures for expending and accounting for their own funds. No. For providers that implement this policy, CDC recommends limiting direct contact between parents and staff. Deducting income before calculating a providers current operating expense as part of determining a subgrant award amount undermines the purpose of the ARP Act stabilization subgrants. Refer to the disbursement schedule linked within the grant dashboard in the LEAD portal. Regarding federal tax rules, please contact your tax preparer or the Internal Revenue Service for guidance. Applications must be posted on the lead agencys child care website. OCC notes that incentives that are not connected to child care programs activities are not an allowable CCDF expenditure. At this time, there is not a federal spending deadline for programs receiving the C3 stabilization funding. Now you are on the Dashboard page, scroll down to the Recertification Section. This bill, based on President Biden's bold American Rescue Plan, provides $39 billion in desperately needed child care relief funding. Providers are encouraged to consult with an accountant or tax expert to fully understand the tax implications of this funding. Personnel Costs (Allowable Workforce Amount Category), Equipment and Supplies for Public Health Emergency. Therefore, you would need to file 1099-Gs to avoid penalties for failure to file (Internal Revenue Code Section 6721) or failure to furnish (6722). A: You can apply some of the grant money to cover lost revenue, but you cant deduct lost revenue as a business expense. This blog explores the tax implications of the American Rescue Plan Act (ARPA) Child Care Stabilization Grants for Home-Based Child Care Providers. Yes. At their option, Lead Agencies may pay providers based on a childs enrollment rather than attendance (45 CFR 98.45(l)(2)(i)). Tax Considerations Monthly ReportingGENERAL What is the purpose of the stabilization grants? Lead agencies were instructed to include a description of their stabilization grant implementation, including the link to the subgrant application on their website, how grants are awarded, any strategies used to target providers in low-income communities, how funds have been used by providers, and any impacts or results on providers (e.g., increased number of licensed child care programs open in underserved area) or child care staff (e.g., increased number of staff receiving higher wages) as a result of the stabilization grants. If so, follow up with your state to make sure they are following their own rules. You may view payment status by logging in. Each months report is due by the last day of the month for the previous month. Here are the government resources for the Child Care Stabilization Grant by state: The Child Care Stabilization Grant is part of the American Rescue Plan Act (ARP Act) (Pub. Please limit your input to 500 characters. In order to serve children outside of the service area established by the child count and the CCDF Plan, a Tribe would need to submit a CCDF Plan amendment to change its service area, and the new service area would have to be on or near the reservation. These grants are in addition to other pandemic-related relief funds (e.g., CARES grants, Paycheck Protection Program loans, EIDL loans). In total, the program provided over $534 million . Child care providers may not involuntarily furlough employees from the date of application submission through the duration of the grant. Where to find more information Home visiting programs typically provide services to parents and families to ensure that they have the necessary resources and skills to raise and care for their own children. No. Yes, essential workers are subject to the eligibility requirement that family assets do not exceed $1 million. The Office of Child Development and Early Learning (OCDEL) made American Rescue Plan Act (ARPA) Stabilization Grants available to eligible child care providers. A: Assuming the money you spend on items for your business are used exclusively for your business, the tax consequences are the same as paying yourself. Provider C receives a $3,500 grant and uses the money to pay for equipment that is used for both her business and her family (e.g., computer, television, furniture). Now, thanks to passage of the American Rescue Plan Act of 2021, the child care sector will receive a total of more than $50 billion in direct relief funding. Tribes may also use CCDF for minor renovation without prior approval. Frequently Asked Questions related to the Child Care Stabilization Grants from the Department of Early Education & Care (EEC). That's according to a recent national survey of early childhood educators, which found 63.3% of Wisconsin centers are experiencing staffing shortages and that . Yes, Lead Agencies may pay full-time subsidy payment rates for school-age child care as long as the Lead Agency is not paying for time when a child is physically attending school and is not paying for any regular education services. Yes, the ARP Act requires the lead agency to make available on the lead agencys website an application for qualified providers that includes certifications the child provider, for the duration of the subgrant, will implement certain health and safety requirements and guidance, pay full compensation to staff, and, to the extent possible, provide relief from copayments and tuition for families in their care (section 2202(d)(2)(D)(i)Visit disclaimer page). Other investments to improve program quality such as supplies, curriculum, screening tools, etc. In total NYS has nearly $1.1 billion in funding under this program. If a Lead Agency is unable to fully liquidate its CCDF FY2018 incurred obligations by September 30, 2020 due to the COVID-19 pandemic, there are three options to consider. Resources to help develop communication strategies that will increase awareness and visibility of the child care stabilization grant program. For Group and School Age/Center-Based (GSA)programs, the formula will use a centers total licensed capacity to calculate the base amount of the monthly payment. These programs were extended in the CRRSA Act. For example, CCDF funds could be used to give packages of gloves and masks to families with the understanding that these materials will be used when parents drop off and pick up children from child care. The Office of Child Care (OCC) notes that in cases where the stabilization subgrants are being awarded to qualified child care providers through intermediaries, those intermediaries are sub-recipients administering a subaward, and, as such, would be subject to rules that apply to sub-recipients, including those related to obtainind a DUNS number or UEI. Tom Copelands Blog: Taking Care of Business After September 30, 2022, no additional CCSG awards will be made. Here is a link to the US Department of Labors webpage on UC benefits related to the COVID-19 outbreakVisit disclaimer page. Lead agencies should notify a provider as soon as the decision to reverse the application is made and provide information on why it was reversed and an opportunity to appeal the decision. OCC encourages child care providers to provide relief from tuition and copayments, if financially possible, especially for low-income families. While we support Lead Agencies attempts to stabilize child care supply and funding during the public health emergency, under existing law and rules, it is not allowable for a Lead Agency to use regular CCDF funds to double-pay subsidies to two different providers for the same child for the same time of service. The supplemental appropriations under the CARES Act and the CRRSA Act can be used to provide child care assistance to health care sector employees, emergency responders, sanitation workers. If a child care provider intends to cover an individuals family subsidy co-payments, they must use funds other than those from EEC. Payments from child care stabilization funding should generally be reported as income. Lead agencies have the discretion to decide which child care providers are included in their ARP Act stabilization subgrant programs. If necessary, you may need to include an explanation of how the items or staff time in question fall within the allowable categories. OCC reminds tribal lead agencies that the ARP Act requires stabilization funds be used to supplement not supplant tribal funds expended for child care services for eligible individuals, including when stabilization funds are used for tribally operated centers. Almost. OCC would presume any decreases in spending on child care services for eligible individuals below the amount that would have been spent under tribal law and policies in place of the date of enactment of the ARP Act (March 11, 2021) to be supplantation. Section 658E(c)(2)(B) of the Child Care and Development Block Grant (CCDBG) Act, 42 USC 9858c(c)(2)(B), and 45 CFR 98.31 of the CCDF regulations require CCDF lead agencies to have in effect procedures to ensure that child care providers receiving CCDF funds afford parents unlimited access to their children and the providers during normal hours of operation and whenever the children are in the care of the provider. Yes, lead agencies can use funding from the administrative, supply-building, and technical assistance set-aside of up to 10 percent for states and territories and 20 percent for tribes to cover personnel costs associated with administering the stabilization funds, including term-limited staff. The ARP Act supplemental funds may also be used to support child care providers in accessing COVID-19 vaccines. Q: Can I get the grant even if I dont have any helpers? Pursuant to Title VI of the Civil Rights Act of 1964, the Americans with Disabilities Act (ADA) and other nondiscrimination laws and authorities, ADES does not discriminate on the basis of race, color, national origin, sex, age, or disability. The Frequently Asked Questions (FAQs) describes how Lead Agencies can support the stability of the child care sector during and after the COVID-19 public health emergency and measures to prevent, prepare for, and respond to coronavirus. How do I treat this on my taxes? The CCSG Workforce Amount began with the July 2022 grant payment for providers starting the month following application approval. The application must justify that the construction/major renovation activity is for the purpose of preventing, preparing for, and responding to, COVID 19. Child care providers that receive a grant have a reporting obligation on Form 1099-G if the amount is above $600. Step 1: Submit an OK Child Care Application Step 2: OKDHS reviews the application Step 3: OKDHS approves the application Step 4: Child care program is notified of approval via email Step 5: Payment will be delivered after the application period ends and your application has been approved. Lead Agencies have the option to waive the income eligibility requirements for children who receive (or need to receive) protective services, if determined to be necessary, on a case-by-case basis. This program doesnt just impact parents and childcare providers either. In addition, the Coronavirus Aid, Relief, and Economic Security Act or the CARES Act (Public Law 116-136) and the Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act of 2021 (Public Law 116-260) provided a combined $13.5 billion in supplemental CCDF program funds to help State, Territory, and Tribal Lead Agencies address COVID-19 impacts, as well as some additional flexibilities for the use of those funds. We encourage family child care providers to contact their local WIC officeVisit disclaimer pagefor more information. However, if the family is no longer eligible due to other eligibility requirements (e.g., age of child, working, or attending training/education) at redetermination, their subsidy may be terminated. Per Federal requirements outlined in The American Rescue Plan (ARP) Act of 2021 (Public Law 117-2), certify that they will meet the following requirements throughout the period of their grants: The provider will, when open and providing services, implement health and safety policies in line with guidance and orders from corresponding state, territorial, tribal, and local authorities and, to the greatest extent possible, implement policies in line with guidance from the Centers for Disease Control and Prevention (CDC). We are sharing the resources below which are designed to support home-based child care providers as they prepare their taxes, including guidance for handling relief funding, including the PPP. See the video here: [video width="1390" height="1000" mp4="http://tomcopelandblog.com/wp-content/uploads/2022/02/Questions-and-Answers-about-Stabilization-Grants.mp4"][/video]. Are there other local resources or options for testing? To access your existing Child Care Stabilization Grant application, please go to childcare-grants.ocfs.ny.gov. The statutory requirement at section 658E(c)(2)(S)(ii) of the Child Care and Development Block Grant (CCDBG) Act requires Lead Agencies to support the fixed costs of providing child care services by delinking provider payment rates from an eligible child's occasional absences due to holidays or unforeseen circumstances such as illness, to the extent practicable. Access to safe and reliable child care is the backbone of our economy and essential for employees to get back to work. Providers will not be penalized for temporary closures that occur during the grant period, provided they are open and serving children for at least part of that month. There are two payment options: If an organization has more than one Massachusetts location, am I eligible to receive more than one grant? If the program is closed due to schedule during the summer, it would not be eligible to apply for a subgrant during that time. The goal of the Child Care Stabilization Grant is to provide financial relief to child care providers to help cover unexpected business costs associated with the COVID-19 pandemic, and to help stabilize their operations so they may continue to provide care. Further, child care providers should keep certain things in mind when determining how to interact with parents in order to control COVID-19. OCC suggests the lead agency document the use of funds, including a written demonstration that the use of funds for incentives is directly connected to a CCDF authorized activity, and that the costs are reasonable and "ordinary and necessary" to accomplish CCDF objectives. Note: Applications for the Child Care Stabilization Grant Program were due by 11:59 PM on March 30, 2022. Lead agencies that want to exempt essential workers from the family asset test must request and have an approved waiver from ACF. In addition, lead agencies can and are expected to use some of their ARP Act stabilization set-aside to help child care providers access and apply for assistance, free of charge to the provider. Lead Agencies may submit a waiver to ACF to reduce the eligibility period for essential workers. Yes, additional child care staff or staff time to assist with cleaning and health screening is an allowable use under CCDBG as an activity to improve the quality of child care services and child safety (45 CFR 95.53(a)(10)). Base amount funds can be used for any approved CCDF activities and are not restricted by spending requirements. The lead agency may also choose to use funds provided by the Coronavirus Response and Relief Supplemental Appropriations (CRRSA) ActVisit disclaimer page to cover copayments for all eligible families. Apply for a Waiver for Extraordinary Circumstances: If the Lead Agency needs relief from specific CCDF requirements (e.g., a reduction in 12-month eligibility for impacted families) due to the COVID-19 situation, the Lead Agency may apply for a waiver for Extraordinary Circumstances. Yes, lead agencies may incentivize subgrant recipients to implement certain policies, such as higher pay for staff. Payments from child care stabilization funding should generally be reported as income. Self-employed FCC providers should keep separate accounts and records for business and personal finances. Are available COVID-19 testing capacities meeting the needs of the community or would increasing testing in child care draw limited testing capacity away from populations with greater risk and exposure (e.g., health care workers and nursing home residents and workers)? Supporting documentation should demonstrate that the purchase in question falls within at least one of the allowable use categories. A policy that moves families currently receiving subsidies to a waitlist is in direct opposition to the graduated phase-out policy. Is this grant counted as income? Q: Can I apply for the Stabilization grant if I already received the Paycheck Protection Program loan? [1]This amount will depend on the state in which the provider lives. 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