S. 3534 creates a new tax credit for employers to help increase wages for child care workers at eligible child care facilities. Under the bill, employers can claim a credit equal to 5 percent of wages paid to child care workers, or 7 percent if the facility is located in a rural area. The credit applies to facilities that serve at least six children, charge fees for their services, and comply with all state and local laws. The bill affects child care employers and workers by providing a financial incentive to raise worker wages, which could help address staffing shortages in the child care industry. The credit would take effect for tax years beginning after the bill's enactment, with no specified funding authorization included in the legislation.
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