How 45F Helps Employers Strengthen Child Care Options: A Look at Hudl and Primrose in Nebraska

Reliable child care is essential for today’s workforce: two-thirds of young children in the U.S. live in households where all available parents are working. But too often, families struggle to find or afford care. One tool that can help address this challenge is the Employer-Provided Child Care Credit, known as 45F, which was recently permanently expanded, making it even easier for businesses to support working parents. As more companies look to utilize this credit, here’s a look at how it worked for Nebraska-based business Hudl: the company partnered with early learning center Primrose School to provide high-quality child care for employees, leading to reduced tuition, higher satisfaction among working parents, and improved retention for the company.

What 45F Allows Employers to Do

Employers can use the credit in several ways:

• Build and operate an on-site child care center for employees.
• Contract with a local provider to offer child care for employees’ children.
• Partner with third-party intermediaries to contract with qualified child care facilities or providers.
  

Case Study: Hudl and Primrose School in Lincoln, Nebraska

Hudl, a Nebraska-based company that provides tools for coaches and athletes, used the 45F credit to partner with Primrose School to open an early education center at its headquarters in Lincoln. The center is open to the public, but Hudl employees receive priority enrollment and a reduced tuition rate. Read the full Hudl case study.

37 Hudl employees enrolled their children in the Primrose School partnership, directly benefiting dozens of young children and their working parents. Parents consistently reported higher job satisfaction and stronger attachment to Hudl, citing both tuition savings and reliable access to high-quality early education as key factors. Hudl also noted improvements in employee retention and progress toward a secondary goal of revitalizing in-office culture, with participating parents reporting that they now work almost exclusively from the office. For many families, the reduced tuition rate was an important incentive to remain at the company, but access to trusted, high-quality child care was the most powerful driver of loyalty and engagement.

The 45F credit lowered Hudl’s tax liability by up to $150,000 per year, reducing operational costs and allowing the company to offer substantially lower tuition rates for employees compared to the public rate. This not only provides a meaningful financial benefit to families but also strengthens employee satisfaction and retention.

As one Hudl employee put it:

“I’ve literally never—even since starting at Primrose—had the thought of ‘Should I explore other job opportunities?’ because I wouldn’t. I wouldn’t give this up.”

Looking Ahead

 Updated in the 2025 tax reconciliation package, 45F now offers stronger incentives, especially for small businesses, to help provide or arrange child care for employees.

Addressing the nation’s child care challenges will require a variety of solutions, from strong federal investments to targeted tax provisions like 45F that help businesses and families alike. Strengthening and expanding tools that support employer-led child care can play a key role in making high-quality care more accessible, more affordable, and more aligned with the needs of today’s workforce.

Learn More: 45F Overview, Child Care in the 2025 Tax Reconciliation Bill, Tax Policy and Child Care