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Home > FAQ's > Quality Child Care Investment Tax Credit FAQ's > FAQ Detail

01. Who is an investor? Do contributors (i.e., gifts or transfers without expectation of a return or profit) qualify for the credit? Do investors who are non-owners of child-care facilities qualify for the credit?

(Note: The qualifying portion of the credit is equal to expenditures paid or incurred by the taxpayer.)

The usual definition of investor is one who makes an investment with an expectation of earning a profit. Within the context of the credit, an investor is a taxpayer that directly pays or incurs the expense for a certified investment (§ 5219-Q(2)). This would exclude contributors and investors not directly incurring the expense for the certified investment. An investor would include a taxpayer operating a not-for-profit child-care facility for its employees.