This bill increases tax credits that employers can claim for providing child care to their workers. Currently, employers can deduct 25 percent of eligible child care expenses; this bill raises that to 40 percent for most employers, 50 percent for small businesses with 500 or fewer employees, and 60 percent for businesses in rural areas or economically distressed neighborhoods. The bill also raises the maximum annual credit an employer can claim from current levels to $1.2 million, with a cap of $2 million in qualifying child care expenses per year. The changes take effect for tax years beginning after the bill's enactment. Additionally, the Treasury Department must launch a public awareness campaign within one year to inform employers about the credit, and the Government Accountability Office must study state and local child care regulations within 12 months to identify ways to reduce barriers that discourage employer participation in child care programs.
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