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Support for Working Families: Child Care Tax Credits

This act aims to make child care more accessible for working parents by expanding tax credits for employers. Companies will be able to claim credits for directly supporting child care and for reimbursing employees for child care expenses. Small businesses will receive increased support, potentially leading to more child care options for employees.
Key points
Employers can now get a tax credit for reimbursing employees for child care costs, not just for providing their own facilities.
Small businesses (up to 50 employees and $25M revenue) will receive a higher tax credit, potentially encouraging more child care support.
A study will be conducted to understand the impact of the tax credit on child care availability and employer challenges.
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Additional Information
Print number: 117_HR_4354
Sponsor: Rep. Wenstrup, Brad R. [R-OH-2]
Process start date: 2021-07-02