arrow_back Back to App

Tax Credit for Small Businesses Starting Dependent Care Flexible Spending Plans (FSA).

This bill introduces a new tax credit for eligible small employers to cover the startup costs of Dependent Care Flexible Spending Arrangement (FSA) plans. The credit applies to expenses incurred for the establishment, administration of the plan, and employee education regarding the plan. The credit is available for the first credit year and the two immediately following taxable years.
Key points
New Tax Credit for Small Employers: Eligible employers can receive a credit equal to the qualified startup costs of Dependent Care FSA plans.
Three-Year Support: The credit is available for the first credit year and the two taxable years immediately following.
Credit Limitation: The annual credit shall not exceed the greater of $500, or the lesser of $250 per eligible non-highly compensated employee or $5,000.
Qualified Costs: Qualified startup costs include expenses for the establishment or administration of the plan, or education of employees with respect to such plan.
article Official text account_balance Process page
Expired
Citizen Poll
No votes cast
Additional Information
Print number: 118_HR_7407
Sponsor: Rep. Smith, Adrian [R-NE-3]
Process start date: 2024-02-16
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-3-pro-preview
Source data: api.congress.gov
AI work logs for this document launch

OFFICIAL LEGAL TITLE

Small Business Dependent Care FSA Opportunity Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_7407.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2024-02-16.

What are the main provisions?

Key points include:

  • New Tax Credit for Small Employers: Eligible employers can receive a credit equal to the qualified startup costs of Dependent Care FSA plans.
  • Three-Year Support: The credit is available for the first credit year and the two taxable years immediately following.
  • Credit Limitation: The annual credit shall not exceed the greater of $500, or the lesser of $250 per eligible non-highly compensated employee or $5,000.
  • Qualified Costs: Qualified startup costs include expenses for the establishment or administration of the plan, or education of employees with respect to such plan.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Smith, Adrian [R-NE-3].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-30.

CATEGORIES

Taxes Family Economy