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Increased Tax Credits for Employer-Provided Child Care

This new law boosts tax credits for employers who help with their employees' child care costs. Small businesses and those in rural areas can get even more support. The goal is to make child care more accessible and ease financial burdens for families.
Key points
Businesses can deduct more costs for providing child care, up to 60% of expenses.
Small businesses (up to 500 employees) and those in rural or eligible areas will receive higher credits.
A credit limit of $1,200,000 annually and an expenditure limit of $2,000,000 annually for eligible expenses are introduced.
The government will launch a public awareness program to inform employers about available credits.
A study will examine regulatory barriers affecting employer-provided child care to find ways to reduce them.
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Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_3155
Sponsor: Rep. Kustoff, David [R-TN-8]
Process start date: 2025-05-01