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Increased Tax Credits for Employers Supporting Child Care Facilities

This Act significantly increases the tax credit available to employers who invest in providing child care services for their employees. The goal is to incentivize businesses to establish or support child care facilities, potentially lowering child care costs for working families. The maximum credit amount is raised, with higher percentage rates offered to small businesses and facilities located in rural or low-income areas.
Key points
Credit Increase: The standard tax credit for employer-provided child care expenditures increases from 25% to 40% of qualified costs.
Higher Rates for Specific Businesses: Small businesses (500 or fewer employees) qualify for a 50% credit, and facilities located in eligible census tracts (rural or low-income areas) qualify for a 60% credit.
Credit Cap Raised: The maximum annual credit an employer can claim is increased to $1,200,000, with a maximum of $2,000,000 in expenditures qualifying for the credit.
Public Awareness: The Treasury Secretary must establish a public awareness program to inform eligible taxpayers about the availability and filing procedures for this enhanced credit.
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Additional Information
Print number: 118_S_5254
Sponsor: Sen. Bennet, Michael F. [D-CO]
Process start date: 2024-09-25
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Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Child Care for American Families Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_5254.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2024-09-25.

What are the main provisions?

Key points include:

  • Credit Increase: The standard tax credit for employer-provided child care expenditures increases from 25% to 40% of qualified costs.
  • Higher Rates for Specific Businesses: Small businesses (500 or fewer employees) qualify for a 50% credit, and facilities located in eligible census tracts (rural or low-income areas) qualify for a 60% credit.
  • Credit Cap Raised: The maximum annual credit an employer can claim is increased to $1,200,000, with a maximum of $2,000,000 in expenditures qualifying for the credit.
  • Public Awareness: The Treasury Secretary must establish a public awareness program to inform eligible taxpayers about the availability and filing procedures for this enhanced credit.
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 Sen. Bennet, Michael F. [D-CO].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-26.

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Taxes Family Labor