Right Start Child Care and Education Act of 2007 - Amends the Internal Revenue Code to: (1) increase the rates and maximum allowable amount of the tax credit for employer-provided child care; (2) increase the dollar limit on the child care tax credit; and (3) allow a $2,000 tax credit for child care providers who hold a bachelor's degree in early childhood education, child care, or a related degree and who provide at least 1,200 hours of child care services in a taxable year.
[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2021 Introduced in House (IH)]
110th CONGRESS
1st Session
H. R. 2021
To amend the Internal Revenue Code of 1986 to increase the credit for
employers establishing workplace child care facilities, to increase the
child care credit to encourage greater use of quality child care
services, and to provide incentives for students to earn child care-
related degrees and to work in child care facilities.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 24, 2007
Mr. Ruppersberger (for himself, Mr. Rangel, Mr. McDermott, Mr.
Gilchrest, Mr. Lewis of Georgia, Mr. Shays, Mr. Van Hollen, Mr. Young
of Alaska, Mrs. Maloney of New York, Mr. Kennedy, Mr. Cummings, Mr.
Wynn, Ms. Norton, Mr. Butterfield, Ms. Watson, Mr. Davis of Illinois,
Mrs. Gillibrand, Mr. Sarbanes, Mr. Cuellar, Ms. Schakowsky, Ms.
Wasserman Schultz, Ms. McCollum of Minnesota, Mr. Cohen, and Ms.
Kilpatrick) introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to increase the credit for
employers establishing workplace child care facilities, to increase the
child care credit to encourage greater use of quality child care
services, and to provide incentives for students to earn child care-
related degrees and to work in child care facilities.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Right Start Child Care and Education
Act of 2007''.
SEC. 2. INCREASE IN EMPLOYER-PROVIDED CHILD CARE CREDIT.
(a) Increase in Creditable Percentage of Child Care Expenditures.--
Paragraph (1) of section 45F(a) of the Internal Revenue Code of 1986 is
amended by striking ``25 percent'' and inserting ``35 percent''.
(b) Increase in Creditable Percentage of Resource and Referral
Expenditures.--Paragraph (2) of section 45F(a) of such Code is amended
by striking ``10 percent'' and inserting ``20 percent''.
(c) Increase in Maximum Credit.--Subsection (b) of section 45F of
such Code is amended by striking ``$150,000'' and inserting
``$225,000''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 3. INCREASE IN CHILD CARE CREDIT.
(a) Increase in Dollar Limit on Amount Creditable.--Subsection (c)
of section 21 of the Internal Revenue Code of 1986 is amended--
(1) by striking ``$3,000'' and inserting ``$5,000'', and
(2) by striking ``$6,000'' and inserting ``$10,000''.
(b) Increase in Incomes Eligible for Full Credit.--Paragraph (2) of
section 21(a) of such Code is amended by striking ``$15,000'' and
inserting ``$20,000''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 4. 3-YEAR CREDIT FOR INDIVIDUALS HOLDING CHILD CARE-RELATED
DEGREES WHO WORK IN LICENSED CHILD CARE FACILITIES.
(a) In General.--Subpart A of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to nonrefundable
personal credits) is amended by inserting after section 25D the
following new section:
``SEC. 25E. RIGHT START CHILD CARE AND EDUCATION CREDIT.
``(a) Allowance of Credit.--In the case of an individual who is an
eligible child care provider for the taxable year, there shall be
allowed as a credit against the tax imposed by this chapter for the
taxable year the amount of $2,000.
``(b) 3-Year Credit.--
``(1) In general.--The credit allowable by subsection (a)
for any taxable year to an individual shall be allowed for such
year only if the individual elects the application of this
section for such year.
``(2) Election.--An election to have this section apply may
not be made by an individual for any taxable year if such an
election by such individual is in effect for any 3 prior
taxable years.
``(c) Eligible Child Care Provider.--For purposes of this section--
``(1) In general.--The term `eligible child care provider'
means, for any taxable year, any individual if--
``(A) as of the close of such taxable year, such
individual holds a bachelor's degree in early childhood
education, child care, or a related degree and such
degree was awarded by an eligible educational
institution (as defined in section 25A(f)(2)), and
``(B) during such taxable year, such individual
performs at least 1,200 hours of child care services at
a facility if--
``(i) the principal use of the facility is
to provide child care services,
``(ii) no more than 25 percent of the
children receiving child care services at the
facility are children (as defined in section
152(f)) of the individual or such individual's
spouse, and
``(iii) the facility meets the requirements
of all applicable laws and regulations of the
State or local government in which it is
located, including the licensing of the
facility as a child care facility.
Subparagraph (B)(i) shall not apply to a facility which
is the principal residence (within the meaning of
section 121) of the operator of the facility.
``(2) Child care services.--The term `child care services'
means child care and early childhood education.''.
(b) Clerical Amendment.--The table of sections for such subpart A
is amended by inserting after the item relating to section 25D the
following new item:
``Sec. 25E. Right Start Child Care and Education Credit.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
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Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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