According to The Urban Institute child care costs can represent a significant barrier for low-income working families. As of 2004, along with a federal credit for child care expenses, 27 states offered tax credits or deductions to offset child care expenses. Thirteen states offered a refundable child care credit - or a credit that was refundable for at least low-income families; twelve states offered child care credits that were non-refundable, and three states offered a deduction of child care expenses.