Are Child Care Assistance reimbursements subject to gross receipts tax (GRT)?

Providers may deduct their receipts from Child Care Assistance contracts from taxable gross receipts. This means if child care providers claim the deduction, they will not have to pay GRT on these receipts, though the receipts still need to be reported. Your program must participate in the Child Care Assistance program to enroll families in the Child Care Assistance program and claim this deduction.