Child Care for Economic Recovery Act
DIVISION A--EMERGENCY CHILD CARE SUPPORT APPROPRIATIONS
Emergency Child Care Support Appropriations Act, 2020
This division provides appropriations for emergency child care support for FY2020.
TITLE I--DEPARTMENT OF THE TREASURY
This title provides additional appropriations for Internal Revenue Service taxpayer services.
TITLE II--DEPARTMENT OF HEALTH AND HUMAN SERVICES
This title provides additional appropriations for the Social Services Block Grant program and the Child Care and Development Fund.
TITLE III--GENERAL PROVISIONS
(Sec. 301) This title sets forth provisions governing FY2020 appropriations made by this bill and amounts designated as emergency requirements.
DIVISION B--WORKER ACCESS TO CHILD AND FAMILY CARE
Worker Access to Child and Family Care Act
(Sec. 402) This section increases and makes refundable the child and dependent care tax credit. It adjusts for inflation the increased amounts of this credit for taxable years beginning after 2020.
(Sec. 403) This section increases the tax exclusion for employer-paid dependent care assistance and adjusts the increased amounts for inflation for taxable years beginning after 2020.
(Sec. 404) This section allows employers impacted by the COVID-19 (i.e., coronavirus disease 2019) pandemic a payroll tax credit for 50% of qualified fixed expenses of child care facilities for each calendar quarter. Qualified fixed expenses means mortgage and rent obligations and utility expenses.
(Sec. 405) This section allows employers a payroll tax credit for 30% of their qualified employee dependent care expenses in a calendar quarter. The amount of the credit for each employee may not exceed $2,500 for any calendar quarter.
(Sec. 406) This section allows a carryover of unused benefits in a dependent care flexible spending arrangements to the next plan year.
(Sec. 407) This section expands the employee retention tax credit to include the employment of domestic workers.
(Sec. 408) This section increases funding for child care stabilization funds for FY2020-FY2024.
(Sec. 409) This section increases funding for the family care expenses of essential workers (i.e., health sector employees, emergency response workers, child care workers, sanitation workers, and workers at a business serving the public during an emergency).
(Sec. 410) Infrastructure Grants To Improve Child Care Safety Act of 2020
This section requires the Department of Health and Human Services (HHS) to conduct an immediate needs assessment of the condition of child care facilities throughout the United States that determines the extent to which the COVID-19 pandemic has created immediate infrastructure needs and the impact of the pandemic on such facilities.
HHS may award grants to acquire,construct, renovate, or improve child care facilities in response to the COVID-19 pandemic and must grant priority in the use of grant funds to assist child care facilities primarily serving low-income populations, children under the age of five, the children of essential workers, and facilities closed during the pandemic.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7327 Introduced in House (IH)]
<DOC>
116th CONGRESS
2d Session
H. R. 7327
Making additional supplemental appropriations for disaster relief
requirements for the fiscal year ending September 30, 2020, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 25, 2020
Mrs. Lowey (for herself, Mr. Neal, Ms. DeLauro, Ms. Clark of
Massachusetts, Mr. Danny K. Davis of Illinois, and Ms. Sanchez)
introduced the following bill; which was referred to the Committee on
Appropriations, and in addition to the Committees on the Budget, and
Ways and Means, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
Making additional supplemental appropriations for disaster relief
requirements for the fiscal year ending September 30, 2020, and for
other purposes.
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 ``Child Care for Economic Recovery
Act''.
SEC. 2. REFERENCES.
Except as expressly provided otherwise, any reference to ``this
Act'' contained in any division of this Act shall be treated as
referring only to the provisions of that division.
DIVISION A--EMERGENCY CHILD CARE SUPPORT APPROPRIATIONS
The following sums in this Act are appropriated, out of any money
in the Treasury not otherwise appropriated, for the fiscal year ending
September 30, 2020, and for other purposes, namely:
TITLE I--DEPARTMENT OF THE TREASURY
Internal Revenue Services
taxpayer services
For an additional amount for ``Taxpayer Services'', $5,000,000, to
remain available until expended, for making grants under the Community
Volunteer Income Tax Assistance Matching Grants Program established
under section 7526A of the Internal Revenue Code of 1986: Provided,
That the matching funds requirement in section 7526A(b)(2) shall not
apply to funds made available under this heading in this Act: Provided
further, That such amount is designated by the Congress as being for an
emergency requirement pursuant to section 251(b)(2)(A)(i) of the
Balanced Budget and Emergency Deficit Control Act of 1985.
TITLE II--DEPARTMENT OF HEALTH AND HUMAN SERVICES
Administration for Children and Families
social services block grant
For an additional amount for ``Social Services Block Grant'',
$850,000,000, to remain available until September 30, 2021, for making
grants to States pursuant to section 2002 of the Social Security Act:
Provided, That the amount made available under this heading in this Act
shall be used for necessary expenses for family care for essential
workers, pursuant to section 409 of division B this Act: Provided
further, That such amount is designated by the Congress as being for an
emergency requirement pursuant to section 251(b)(2)(A)(i) of the
Balanced Budget and Emergency Deficit Control Act of 1985.
child care and development fund
For an additional amount for ``Child Care and Development Fund'',
$10,000,000,000, to remain available until September 30, 2024, for
necessary expenses for infrastructure grants to improve child care
safety, including needs assessments, pursuant to section 418A of Part A
of title IV of the Social Security Act, as added by division B of this
Act: Provided, That funds made available under this heading in this
Act may be used for grants for the construction, alteration, or
renovation of non-federally owned facilities to improve child care
safety: Provided further, That all construction, alteration, or
renovation work, carried out in whole or in part with funds
appropriated under this heading in this Act, shall be subject to the
requirements of subchapter IV of chapter 31 of title 40, United States
Code (commonly referred to as the ``Davis-Bacon Act''): Provided
further, That such amount is designated by the Congress as being for an
emergency requirement pursuant to section 251(b)(2)(A)(i) of the
Balanced Budget and Emergency Deficit Control Act of 1985.
TITLE III--GENERAL PROVISIONS--THIS DIVISION
Sec. 301. Each amount appropriated or made available by this Act
is in addition to any amounts otherwise appropriated for the fiscal
year involved.
Sec. 302. No part of any appropriation contained in this Act shall
remain available for obligation beyond the current fiscal year unless
expressly so provided herein.
Sec. 303. Unless otherwise provided for by this Act, the
additional amounts appropriated by this Act to appropriations accounts
shall be available under the authorities and conditions applicable to
such appropriations accounts for fiscal year 2020.
Sec. 304. Each amount designated in this Act by the Congress as
being for an emergency requirement pursuant to section 251(b)(2)(A)(i)
of the Balanced Budget and Emergency Deficit Control Act of 1985 shall
be available (or rescinded or transferred, if applicable) only if the
President subsequently so designates all such amounts and transmits
such designations to the Congress.
Sec. 305. Any amount appropriated by this Act, designated by the
Congress as an emergency requirement pursuant to section
251(b)(2)(A)(i) of the Balanced Budget and Emergency Deficit Control
Act of 1985 and subsequently so designated by the President, and
transferred pursuant to transfer authorities provided by this Act shall
retain such designation.
budgetary effects
Sec. 306. (a) Statutory PAYGO Scorecards.--The budgetary effects
of division B shall not be entered on either PAYGO scorecard maintained
pursuant to section 4(d) of the Statutory Pay-As-You-Go Act of 2010.
(b) Senate PAYGO Scorecards.--The budgetary effects of division B
shall not be entered on any PAYGO scorecard maintained for purposes of
section 4106 of H. Con. Res. 71 (115th Congress).
(c) Classification of Budgetary Effects.--Notwithstanding Rule 3 of
the Budget Scorekeeping Guidelines set forth in the joint explanatory
statement of the committee of conference accompanying Conference Report
105-217 and section 250(c)(8) of the Balanced Budget and Emergency
Deficit Control Act of 1985, the budgetary effects of division B shall
not be estimated--
(1) for purposes of section 251 of such Act; and
(2) for purposes of paragraph (4)(C) of section 3 of the
Statutory Pay-As-You-Go Act of 2010 as being included in an
appropriation Act.
This division may be cited as the ``Emergency Child Care Support
Appropriations Act, 2020''.
DIVISION B--WORKER ACCESS TO CHILD AND FAMILY CARE
SEC. 401. SHORT TITLE.
This division may be cited as the ``Worker Access to Child and
Family Care Act''.
SEC. 402. REFUNDABILITY AND ENHANCEMENT OF CHILD AND DEPENDENT CARE TAX
CREDIT.
(a) Treatment of Credit as Refundable.--Section 21 of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
subsection:
``(g) Treatment of Credit as Refundable.--In the case of an
individual other than a nonresident alien, the credit allowed under
subsection (a) shall be treated as a credit allowed under subpart C
(and not allowed under this subpart).''.
(b) Increase in Applicable Percentage.--Section 21(a)(2) of such
Code is amended--
(1) by striking ``35 percent'' and inserting ``50
percent'', and
(2) by striking ``$15,000'' and inserting ``$120,000''.
(c) Increase in Dollar Limit on Amount Creditable.--Section 21(c)
of such Code is amended--
(1) by striking ``$3,000'' in paragraph (1) and inserting
``$6,000'', and
(2) by striking ``$6,000'' in paragraph (2) and inserting
``twice the amount in effect under paragraph (1)''.
(d) Inflation Adjustment.--Section 21(e) of such Code is amended by
adding at the end the following new paragraph:
``(11) Inflation adjustment.--In the case of any taxable
year beginning after December 31, 2020, the $120,000 amount in
subsection (a)(2) and the $6,000 amount in subsection (c)(1)
shall each be increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year in which
the taxable year begins, determined by substituting
`2019' for `2016' in subparagraph (A)(ii) thereof.
If any increase determined under this paragraph is not a
multiple of $100, such increase shall be rounded to the next
highest multiple of $100.''.
(e) Conforming Amendment.--Section 1324(b)(2) of title 31, United
States Code, is amended by inserting ``21 (by reason of subsection (g)
thereof),'' before ``25A''.
(f) Coordination With Possession Tax Systems.--Section 21(g)(1) of
the Internal Revenue Code of 1986 (as added by this section) shall not
apply to any person--
(1) to whom a credit is allowed against taxes imposed by a
possession with a mirror code tax system by reason of the
application of section 21 of such Code in such possession for
such taxable year, or
(2) to whom a credit would be allowed against taxes imposed
by a possession which does not have a mirror code tax system if
the provisions of section 21 of such Code had been in effect in
such possession for such taxable year.
(g) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2019.
SEC. 403. INCREASE IN EXCLUSION FOR EMPLOYER-PROVIDED DEPENDENT CARE
ASSISTANCE.
(a) In General.--Section 129(a)(2)(A) of the Internal Revenue Code
of 1986 is amended by striking ``$5,000 ($2,500'' and inserting
``$10,500 (half such dollar amount''.
(b) Inflation Adjustment.--Section 129(a)(2) is amended by adding
at the end the following new subparagraph:
``(D) Inflation adjustment.--In the case of any
taxable year beginning after December 31, 2020, the
$10,500 amount in subparagraph (A) shall be increased
by an amount equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for the
calendar year in which the taxable year begins,
determined by substituting `2019' for `2016' in
subparagraph (A)(ii) thereof.
Any increase determined under the preceding sentence
which is not a multiple of $50, shall be rounded to the
next highest multiple of $50.''.
(c) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2019.
(d) Plan Amendments.--A plan or other arrangement that otherwise
satisfies all applicable requirements of sections 106, 125, and 129 of
the Internal Revenue Code of 1986 (including any rules or regulations
thereunder) shall not fail to be treated as a cafeteria plan or
dependent care flexible spending arrangement merely because such plan
or arrangement is amended pursuant to the amendments made by this
section and such amendment is retroactive, if--
(1) such amendment is adopted no later than the last day of
the first plan year beginning after December 31, 2019, and
(2) the plan or arrangement is operated consistent with the
terms of such amendment during the period beginning on the
effective date of the amendment and ending on the date the
amendment is adopted.
SEC. 404. PAYROLL CREDIT FOR CERTAIN FIXED EXPENSES OF CHILD CARE
FACILITIES SUBJECT TO CLOSURE BY REASON OF COVID-19.
(a) In General.--In the case of an eligible employer, there shall
be allowed as a credit against applicable employment taxes for each
calendar quarter an amount equal to 50 percent of the qualified fixed
expenses paid or incurred by such employer during such calendar
quarter.
(b) Limitations and Refundability.--
(1) Overall quarterly dollar limitation.--The qualified
fixed expenses which may be taken into account under subsection
(a) (determined after the application of paragraph (2)) by any
eligible employer for any calendar quarter shall not exceed the
least of--
(A) the qualified fixed expenses paid by the
eligible employer in the same calendar quarter of
calendar year 2019,
(B) $25,000,000, or
(C) the greater of--
(i) 25 percent of the wages paid with
respect to the employment of all the employees
of the eligible employer for such calendar
quarter, or
(ii) 6.25 percent of the gross receipts of
the eligible employer for calendar year 2019.
(2) Per facility quarterly dollar limitation.--The
qualified fixed expenses which may be taken into account under
subsection (a) by any eligible employer for any calendar
quarter with respect to any facility of such employer shall not
exceed $50,000.
(3) Credit limited to certain employment taxes.--The credit
allowed by subsection (a) with respect to any calendar quarter
shall not exceed the applicable employment taxes for such
calendar quarter (reduced by any credits allowed under
subsections (e) and (f) of section 3111 of such Code, sections
7001 and 7003 of the Families First Coronavirus Response Act,
and section 2301 of the CARES Act, for such quarter) on the
wages paid with respect to the employment of all the employees
of the eligible employer for such calendar quarter.
(4) Refundability of excess credit.--
(A) In general.--If the amount of the credit under
subsection (a) exceeds the limitation of paragraph (3)
for any calendar quarter, such excess shall be treated
as an overpayment that shall be refunded under sections
6402(a) and 6413(b) of the Internal Revenue Code of
1986.
(B) Treatment of payments.--For purposes of section
1324 of title 31, United States Code, any amounts due
to an employer under this paragraph shall be treated in
the same manner as a refund due from a credit provision
referred to in subsection (b)(2) of such section.
(c) Definitions.--For purposes of this section--
(1) Applicable employment taxes.--The term ``applicable
employment taxes'' means the following:
(A) The taxes imposed under section 3111(a) of the
Internal Revenue Code of 1986.
(B) So much of the taxes imposed under section
3221(a) of such Code as are attributable to the rate in
effect under section 3111(a) of such Code.
(2) Eligible employer.--
(A) In general.--The term ``eligible employer''
means any employer--
(i) which was carrying on a trade or
business engaged in the provision of child care
assistance at a qualified child care facility
(within the meaning of section 45F(c)(2)(A) of
such Code without regard to the last sentence
thereof) at any time during calendar year 2020,
and
(ii) with respect to any calendar quarter,
for which--
(I) the operation of the trade or
business described in clause (i) is
fully or partially suspended during the
calendar quarter due to orders from an
appropriate governmental authority
limiting commerce, travel, or group
meetings (for commercial, social,
religious, or other purposes) due to
the coronavirus disease 2019 (COVID-
19), or
(II) such calendar quarter is
within the period described in
subparagraph (B).
(B) Significant decline in gross receipts.--The
period described in this subparagraph is the period--
(i) beginning with the first calendar
quarter beginning after December 31, 2019, for
which gross receipts (within the meaning of
section 448(c) of the Internal Revenue Code of
1986) for the calendar quarter are less than 90
percent of gross receipts for the same calendar
quarter in the prior year, and
(ii) ending with the calendar quarter
following the first calendar quarter beginning
after a calendar quarter described in clause
(i) for which gross receipts of such employer
are greater than 90 percent of gross receipts
for the same calendar quarter in the prior
year.
(C) Tax-exempt organizations.--In the case of an
organization which is described in section 501(c) of
the Internal Revenue Code of 1986 and exempt from tax
under section 501(a) of such Code--
(i) any reference in this section to a
trade or business shall be treated as a
reference to the operations of such
organization which are related to the provision
of child care assistance (within the meaning of
subparagraph (A)(i)), and
(ii) any reference in this section to gross
receipts shall be treated as a reference to
gross receipts within the meaning of section
6033 of the Internal Revenue Code of 1986.
(D) Phase-in of credit where business not suspended
and reduction in gross receipts less than 50 percent.--
(i) In general.--In the case of any
calendar quarter with respect to which an
eligible employer would not be an eligible
employer if subparagraph (B)(i) were applied by
substituting ``50 percent'' for ``90 percent'',
the amount of the credit allowed under
subsection (a) shall be reduced by the amount
which bears the same ratio to the amount of
such credit (determined without regard to this
subparagraph) as--
(I) the excess gross receipts
percentage point amount, bears to
(II) 40 percentage points.
(ii) Excess gross receipts percentage point
amount.--For purposes of this subparagraph, the
term ``excess gross receipts percentage point
amount'' means, with respect to any calendar
quarter, the excess of--
(I) the lowest of the gross
receipts percentage point amounts
determined with respect to any calendar
quarter during the period ending with
such calendar quarter and beginning
with the first calendar quarter during
the period described in subparagraph
(B), over
(II) 50 percentage points.
(iii) Gross receipts percentage point
amounts.--For purposes of this subparagraph,
the term ``gross receipts percentage point
amount'' means, with respect to any calendar
quarter, the percentage (expressed as a number
of percentage points) obtained by dividing--
(I) the gross receipts (within the
meaning of subparagraph (B)) for such
calendar quarter, by
(II) the gross receipts for the
same calendar quarter in calendar year
2019.
(3) Qualified fixed expenses.--
(A) In general.--The term ``qualified fixed
expenses'' means the payment or accrual, in the
ordinary course of the eligible employer's trade or
business, of any covered mortgage obligation, covered
rent obligation, or covered utility payment. Such term
shall not include the prepayment of any obligation for
a period in excess of a month unless the payment for
such period is customarily due in advance. Such term
shall not include any payment or accrual of any
obligation or payment which is with respect to property
which is not located in the United States or any
possession of the United States.
(B) Application of definitions.--The terms
``covered mortgage obligation'', ``covered rent
obligation'', and ``covered utility payment'' shall
each have the same meaning as when used in section 1106
of the CARES Act.
(4) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury or the Secretary's delegate.
(5) Wages.--
(A) In general.--The term ``wages'' means wages (as
defined in section 3121(a) of the Internal Revenue Code
of 1986) and compensation (as defined in section
3231(e) of such Code). For purposes of the preceding
sentence (other than for purposes of subsection
(b)(2)), wages as defined in section 3121(a) of such
Code shall be determined without regard to paragraphs
(1), (8), (10), (13), (18), (19), and (22) of section
3121(b) of such Code.
(B) Allowance for certain health plan expenses.--
(i) In general.--Such term shall include
amounts paid or incurred by the eligible
employer to provide and maintain a group health
plan (as defined in section 5000(b)(1) of the
Internal Revenue Code of 1986), but only to the
extent that such amounts are excluded from the
gross income of employees by reason of section
106(a) of such Code.
(ii) Allocation rules.--For purposes of
this section, amounts treated as wages under
clause (i) shall be treated as paid with
respect to any employee (and with respect to
any period) to the extent that such amounts are
properly allocable to such employee (and to
such period) in such manner as the Secretary
may prescribe. Except as otherwise provided by
the Secretary, such allocation shall be treated
as properly made if made on the basis of being
pro rata among periods of coverage.
(6) Employer.--The term ``employer'' means any employer (as
defined in section 3401(d) of such Code) of at least one
employee on any day in calendar year 2020.
(7) Other terms.--Except as otherwise provided in this
section, any term used in this section which is also used in
chapter 21 or 22 of the Internal Revenue Code of 1986 shall
have the same meaning as when used in such chapter.
(d) Aggregation Rule.--All persons treated as a single employer
under subsection (a) or (b) of section 52 of the Internal Revenue Code
of 1986, or subsection (m) or (o) of section 414 of such Code, shall be
treated as one employer for purposes of this section.
(e) Denial of Double Benefit.--For purposes of chapter 1 of such
Code, the gross income of any eligible employer, for the taxable year
which includes the last day of any calendar quarter with respect to
which a credit is allowed under this section, shall be increased by the
amount of such credit.
(f) Certain Governmental Employers.--
(1) In general.--The credit under this section shall not be
allowed to the Federal Government, the government of any State,
of the District of Columbia, or of any possession of the United
States, any tribal government, or any political subdivision,
agency, or instrumentality of any of the foregoing.
(2) Exception.--Paragraph (1) shall not apply to any
organization described in section 501(c)(1) of the Internal
Revenue Code of 1986 and exempt from tax under section 501(a)
of such Code.
(g) Election Not To Have Section Apply.--This section shall not
apply with respect to any eligible employer for any calendar quarter if
such employer elects (at such time and in such manner as the Secretary
may prescribe) not to have this section apply.
(h) Transfers to Certain Trust Funds.--There are hereby
appropriated to the Federal Old-Age and Survivors Insurance Trust Fund
and the Federal Disability Insurance Trust Fund established under
section 201 of the Social Security Act (42 U.S.C. 401) and the Social
Security Equivalent Benefit Account established under section 15A(a) of
the Railroad Retirement Act of 1974 (45 U.S.C. 231n-1(a)) amounts equal
to the reduction in revenues to the Treasury by reason of this section
(without regard to this subsection). Amounts appropriated by the
preceding sentence shall be transferred from the general fund at such
times and in such manner as to replicate to the extent possible the
transfers which would have occurred to such Trust Fund or Account had
this section not been enacted.
(i) Treatment of Deposits.--The Secretary shall waive any penalty
under section 6656 of such Code for any failure to make a deposit of
applicable employment taxes if the Secretary determines that such
failure was due to the anticipation of the credit allowed under this
section.
(j) Third-Party Payors.--Any credit allowed under this section
shall be treated as a credit described in section 3511(d)(2) of such
Code.
(k) Regulations and Guidance.--The Secretary shall issue such
forms, instructions, regulations, and guidance as are necessary--
(1) to allow the advance payment of the credit under
subsection (a), subject to the limitations provided in this
section, based on such information as the Secretary shall
require,
(2) regulations or other guidance to provide for the
reconciliation of such advance payment with the amount of the
credit at the time of filing the return of tax for the
applicable quarter or taxable year,
(3) with respect to the application of the credit under
subsection (a) to third-party payors (including professional
employer organizations, certified professional employer
organizations, or agents under section 3504 of the Internal
Revenue Code of 1986), including regulations or guidance
allowing such payors to submit documentation necessary to
substantiate the eligible employer status of employers that use
such payors,
(4) for application of subsection (b)(1)(A) and
subparagraphs (A)(ii)(II) and (B) of subsection (c)(2) in the
case of any employer which was not carrying on a trade or
business for all or part of the same calendar quarter in the
prior year, and
(5) for recapturing the benefit of credits determined under
this section in cases where there is a subsequent adjustment to
the credit determined under subsection (a).
(l) Application of Section.--This section shall apply only to
qualified fixed expenses paid or accrued in calendar quarters beginning
on or after the date of the enactment of this Act and before January 1,
2021.
SEC. 405. PAYROLL CREDIT FOR CERTAIN EMPLOYEE DEPENDENT CARE EXPENSES
PAID BY EMPLOYERS.
(a) In General.--In the case of an employer, there shall be allowed
as a credit against applicable employment taxes for each calendar
quarter an amount equal to 30 percent of the qualified employee
dependent care expenses paid by such employer with respect to such
calendar quarter.
(b) Limitations and Refundability.--
(1) Dollar limitation per employee.--The qualified employee
dependent care expenses which may be taken into account under
subsection (a) with respect to any employee for any calendar
quarter shall not exceed $2,500.
(2) Credit limited to certain employment taxes.--The credit
allowed by subsection (a) with respect to any calendar quarter
shall not exceed the applicable employment taxes for such
calendar quarter (reduced by any credits allowed under
subsections (e) and (f) of section 3111 of such Code, sections
7001 and 7003 of the Families First Coronavirus Response Act,
section 2301 of the CARES Act, and section 4 of this Act, for
such quarter) on the wages paid with respect to the employment
of all the employees of the employer for such calendar quarter.
(3) Refundability of excess credit.--
(A) In general.--If the amount of the credit under
subsection (a) exceeds the limitation of paragraph (2)
for any calendar quarter, such excess shall be treated
as an overpayment that shall be refunded under sections
6402(a) and 6413(b) of the Internal Revenue Code of
1986.
(B) Treatment of payments.--For purposes of section
1324 of title 31, United States Code, any amounts due
to an employer under this paragraph shall be treated in
the same manner as a refund due from a credit provision
referred to in subsection (b)(2) of such section.
(4) Coordination with government grants.--The qualified
employee dependent care expenses taken into account under this
section by any employer shall be reduced by any amounts
provided by any Federal, State, or local government for
purposes of making or reimbursing such expenses.
(c) Qualified Employee Dependent Care Expenses.--For purposes of
this section, the term ``qualified employee dependent care expenses''
means any amount paid to or for the benefit of an employee in the
employment of the employer if--
(1) such amount is dependent care assistance (as defined in
section 129(e)(1) of the Internal Revenue Code of 1986), and
(2) the employer elects (at such time and in such manner as
the Secretary may provide) to treat such amount as a qualified
employee dependent care expense.
(d) Special Rules; Other Definitions.--
(1) Application of certain non-discrimination rules.--No
credit shall be allowed under this section to any employer for
any calendar quarter if qualified employee dependent care
expenses are provided by such employer to employees for such
calendar quarter in a manner which discriminates in favor of
highly compensated individuals (within the meaning of section
125) as to eligibility for, or the amount of, such benefit
expenses.
(2) Denial of double benefit.--For purposes of chapter 1 of
such Code, no deduction or credit (other than the credit
allowed under this section) shall be allowed for so much of
qualified employee dependent care expenses as is equal to the
credit allowed under this section.
(3) Third-party payors.--Any credit allowed under this
section shall be treated as a credit described in section
3511(d)(2) of such Code.
(4) Applicable employment taxes.--For purposes of this
section, the term ``applicable employment taxes'' means the
following:
(A) The taxes imposed under section 3111(a) of the
Internal Revenue Code of 1986.
(B) So much of the taxes imposed under section
3221(a) of such Code as are attributable to the rate in
effect under section 3111(a) of such Code.
(5) Secretary.--For purposes of this section, the term
``Secretary'' means the Secretary of the Treasury or the
Secretary's delegate.
(6) Certain terms.--
(A) In general.--Any term used in this section
which is also used in chapter 21 or 22 of such Code
shall have the same meaning as when used in such
chapter (as the case may be).
(B) Certain provisions not taken into account
except for purposes of limiting credit to employment
taxes.--For purposes of subparagraph (A) (other than
with respect to subsection (b)(2)), section 3121(b) of
such Code shall be applied without regard to paragraphs
(1), (5), (6), (7), (8), (10), (13), (18), (19), and
(22) thereof (except with respect to services performed
in a penal institution by an inmate thereof) and
section 3231(e)(1) shall be applied without regard to
the sentence that begins ``Such term does not include
remuneration''.
(e) Certain Governmental Employers.--
(1) In general.--The credit under this section shall not be
allowed to the Federal Government or any agency or
instrumentality thereof.
(2) Exception.--Paragraph (1) shall not apply to any
organization described in section 501(c)(1) of the Internal
Revenue Code of 1986 and exempt from tax under section 501(a)
of such Code.
(f) Treatment of Deposits.--The Secretary shall waive any penalty
under section 6656 of such Code for any failure to make a deposit of
applicable employment taxes if the Secretary determines that such
failure was due to the anticipation of the credit allowed under this
section.
(g) Regulations.--The Secretary shall prescribe such regulations or
other guidance as may be necessary to carry out the purposes of this
section, including regulations or other guidance--
(1) to allow the advance payment of the credit determined
under subsection (a), subject to the limitations provided in
this section, based on such information as the Secretary shall
require,
(2) to provide for the reconciliation of such advance
payment with the amount of the credit at the time of filing the
return of tax for the applicable quarter or taxable year,
(3) for recapturing the benefit of credits determined under
this section in cases where there is a subsequent adjustment to
the credit determined under subsection (a), and
(4) with respect to the application of the credit to third
party payors (including professional employer organizations,
certified professional employer organizations, or agents under
section 3504 of such Code), including to allow such payors to
submit documentation necessary to substantiate eligibility for,
and the amount of, the credit allowed under this section.
(h) Application of Section.--This section shall apply only to
qualified employee dependent care expenses paid in calendar quarters
beginning on or after the date of the enactment of this Act and before
January 1, 2021.
(i) Transfers to Certain Trust Funds.--There are hereby
appropriated to the Federal Old-Age and Survivors Insurance Trust Fund
and the Federal Disability Insurance Trust Fund established under
section 201 of the Social Security Act (42 U.S.C. 401) and the Social
Security Equivalent Benefit Account established under section 15A(a) of
the Railroad Retirement Act of 1974 (45 U.S.C. 231n-1(a)) amounts equal
to the reduction in revenues to the Treasury by reason of this section
(without regard to this subsection). Amounts appropriated by the
preceding sentence shall be transferred from the general fund at such
times and in such manner as to replicate to the extent possible the
transfers which would have occurred to such Trust Fund or Account had
this section not been enacted.
SEC. 406. FLEXIBILITY FOR DEPENDENT CARE FLEXIBLE SPENDING
ARRANGEMENTS.
(a) Carryover of Unused Benefits.--A plan or other arrangement that
otherwise satisfies all applicable requirements of sections 106, 125,
and 129 of the Internal Revenue Code of 1986 (including any rules or
regulations thereunder) shall not fail to be treated as a cafeteria
plan or dependent care flexible spending arrangement merely because
such plan or arrangement permits participants to carry over (under
rules similar to the rules applicable to health flexible spending
arrangements) an amount, not in excess of the amount in effect under
section 129(a)(2)(A) of such Code, of unused benefits or contributions
remaining in a dependent care flexible spending arrangement from the
plan year ending in 2020 to the plan year ending in 2021.
(b) Extension of Grace Periods.--A plan or other arrangement that
otherwise satisfies all applicable requirements of sections 106, 125,
or 129 of the Internal Revenue Code (including any rules or regulations
thereunder) shall not fail to be treated as a cafeteria plan or
dependent care flexible spending arrangement merely because such plan
or arrangement extends the grace period for the plan year ending in
2020 to 12 months after the end of such plan year, with respect to
unused benefits or contributions remaining in a dependent care flexible
spending arrangement.
(c) Definitions.--Any term used in this section which is also used
in section 106, 125, or 129 of the Internal Revenue Code of 1986 or the
rules or regulations thereunder shall have the same meaning as when
used in such section or rules or regulations.
(d) Plan Amendments.--A plan or other arrangement that otherwise
satisfies all applicable requirements of sections 106, 125, and 129 of
the Internal Revenue Code of 1986 (including any rules or regulations
thereunder) shall not fail to be treated as a cafeteria plan or
dependent care flexible spending arrangement merely because such plan
or arrangement is amended pursuant to a provision under this section
and such amendment is retroactive, if--
(1) such amendment is adopted no later than the last day of
the plan year in which the amendment is effective, and
(2) the plan or arrangement is operated consistent with the
terms of such amendment during the period beginning on the
effective date of the amendment and ending on the date the
amendment is adopted.
SEC. 407. EMPLOYEE RETENTION CREDIT ALLOWED WITH RESPECT TO EMPLOYMENT
OF DOMESTIC WORKERS.
(a) In General.--Section 2301(c)(2) of the CARES Act is amended by
adding at the end the following new subparagraph:
``(D) Employers of domestic workers.--In the case
of an employer with one or more employees who perform
domestic service (within the meaning of section
3121(a)(7) of such Code) in the private home of such
employer, with respect to such employees--
``(i) subparagraph (A) shall be applied--
``(I) by substituting `employing an
employee who performs domestic service
in the private home of such employer'
for `carrying on a trade or business'
in clause (i) thereof, and
``(II) by substituting `such
employment' for `the operation of the
trade or business' in clause (ii)(I)
thereof,
``(ii) subclause (II) of subparagraph
(A)(ii) shall not apply, and
``(iii) such employer shall be treated as a
large employer.''.
(b) Denial of Double Benefit.--Section 2301(h)(2) of the CARES Act
is amended--
(1) by striking ``shall not be taken into account for
purposes of'' and inserting ``shall not be taken into account--
``(A) for purposes of'',
(2) by striking the period at the end and inserting ``,
and'', and
(3) by adding at the end the following:
``(B) if such wages are paid for domestic service
described in subsection (c)(2)(E), as employment-
related expenses for purposes of section 21 of such
Code.
In the case of any individual who pays wages for domestic
service described in subsection (c)(2)(E) and receives a
reimbursement for such wages which is excludible from gross
income under section 129 of such Code, such wages shall not be
treated as qualified wages for purposes of this section.''.
(c) Effective Date.--The amendments made by this section shall take
effect as if included in section 2301 of the CARES Act.
SEC. 408. CHILD CARE STABILIZATION FUNDS.
(a) In General.--Section 418(a)(3) of the Social Security Act (42
U.S.C. 618(a)(3)) is amended by striking ``$2,917,000,000 for each of
fiscal years 2017 and 2018'' and inserting ``$10,000,000,000 for each
of fiscal years 2020 through 2024''.
(b) Additional Funds Not Subject to State Match Requirement.--With
respect to the amounts appropriated in section 418(a)(3) of the Social
Security Act in excess of $2,917,000,000 for each of fiscal years 2020
and 2021, section 418(a)(2)(C) of such Act shall be applied and
administered with respect to any State that is entitled to receive the
entire amount that would be allotted to the State under section
418(a)(2)(B) of such Act for the fiscal year in the absence of this
section, as if the Federal medical assistance percentage for the State
for the fiscal year were 100 percent.
SEC. 409. FAMILY CARE FOR ESSENTIAL WORKERS.
(a) Increase in Funding.--The amount specified in subsection (c) of
section 2003 of the Social Security Act for purposes of subsections (a)
and (b) of such section is deemed to be $2,550,000,000 for fiscal year
2020, of which $850,000,000 shall be obligated by States during
calendar year 2020 in accordance with subsection (b) of this section.
(b) Rules Governing Use of Additional Funds.--
(1) In general.--Funds are used in accordance with this
subsection if--
(A) the funds are used for--
(i) child care services for a child of an
essential worker; or
(ii) daytime care services or other adult
protective services for an individual who--
(I) is a dependent, or a member of
the household of, an essential worker;
and
(II) requires the services;
(B) the funds are provided to reimburse an
essential worker for the cost of obtaining the services
(including child and adult care services obtained on or
after the date the Secretary of Health and Human
Services declared a public health emergency pursuant to
section 319 of the Public Health Service Act on January
31, 2020, entitled ``Determination that a Public Health
Emergency Exists Nationwide as the Result of the 2019
Novel Coronavirus''), to a provider of child or adult
care services, or to establish a temporary child care
facility operated by a State or local government;
(C) eligibility for the funds or services, and the
amount of funds or services provided, is not
conditioned on a means test;
(D) the funds are used in consultation with the
lead agency designated pursuant to section 658D(a) of
the Child Care and Development Block Grant Act of 1990
by the State involved and subject to the limitations in
section 2005 of the Social Security Act, except that,
for purposes of this subparagraph--
(i) paragraphs (3), (5), and (8) of section
2005(a) of such Act shall not apply; and
(ii)(I) the limitation in section
2005(a)(7) of such Act shall not apply with
respect to any standard which the State
involved determines would impede the ability of
the State to provide emergency temporary care
to a child, dependent, or household member
referred to in subparagraph (A) of this
paragraph if the emergency temporary care would
not endanger the health, safety, or development
of children who received the care and care
would otherwise not be available to support the
immediate, short-term family care needs of
essential workers; and
(II) if the State determines that such a
standard would be so impeding, the State shall
report the determination to the Secretary,
including a description of how exempting
standards that may impede the ability of the
State to provide emergency temporary care did
not endanger the health, safety, or development
of children who received emergency temporary
care, separately from the annual report to the
Secretary by the State;
(E) the funds are used to supplement, not supplant,
State general revenue funds for child care assistance;
and
(F) the funds are not used for child care costs
that are--
(i) covered by funds provided under the
Head Start Act, a preschool development grant
under section 9121 of the Every Student
Succeeds Act (42 U.S.C. 9831 note), the Child
Care and Development Block Grant Act of 1990,
section 418 of the Social Security Act, or
another federally funded dependent care
program; or
(ii) reimbursable by the Federal Emergency
Management Agency.
(2) Essential worker defined.--In paragraph (1), the term
``essential worker'' means--
(A) a health sector employee;
(B) an emergency response worker;
(C) a child care worker;
(D) a sanitation worker;
(E) a worker at a business which a State or local
government official has determined must remain open to
serve the public during the emergency referred to in
paragraph (1)(B); and
(F) any other worker who cannot telework, and whom
the State deems to be essential during the emergency
referred to in paragraph (1)(B).
SEC. 410. INFRASTRUCTURE GRANTS TO IMPROVE CHILD CARE SAFETY.
(a) In General.--Part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.) is amended by inserting after section 418 the
following:
``SEC. 418A. INFRASTRUCTURE GRANTS TO IMPROVE CHILD CARE SAFETY.
``(a) Short Title.--This section may be cited as the
`Infrastructure Grants To Improve Child Care Safety Act of 2020'.
``(b) Needs Assessments.--
``(1) Immediate needs assessment.--
``(A) In general.--The Secretary shall conduct an
immediate needs assessment of the condition of child
care facilities throughout the United States (with
priority given to child care facilities that receive
Federal funds), that--
``(i) determines the extent to which the
COVID-19 pandemic has created immediate
infrastructure needs, including infrastructure-
related health and safety needs, which must be
addressed for child care facilities to operate
in compliance with public health guidelines;
``(ii) considers the effects of the
pandemic on a variety of child care centers,
including home-based centers; and
``(iii) considers how the pandemic has
impacted specific metrics, such as--
``(I) capacity;
``(II) investments in
infrastructure changes;
``(III) the types of infrastructure
changes centers need to implement and
their associated costs;
``(IV) the price of tuition; and
``(V) any changes or anticipated
changes in the number and demographic
of children attending.
``(B) Timing.--The immediate needs assessment
should occur simultaneously with the first grant-making
cycle under subsection (c).
``(C) Report.--Not later than 1 year after the date
of the enactment of this section, the Secretary shall
submit to the Congress a report containing the result
of the needs assessment conducted under subparagraph
(A), and make the assessment publicly available.
``(2) Long-term needs assessment.--
``(A) In general.--The Secretary shall conduct a
long-term assessment of the condition of child care
facilities throughout the United States (with priority
given to child care facilities that receive Federal
funds). The assessment may be conducted through
representative random sampling.
``(B) Report.--Not later than 4 years after the
date of the enactment of this section, the Secretary
shall submit to the Congress a report containing the
results of the needs assessment conducted under
subparagraph (A), and make the assessment publicly
available.
``(c) Child Care Facilities Grants.--
``(1) Grants to states.--
``(A) In general.--The Secretary may award grants
to States for the purpose of acquiring, constructing,
renovating, or improving child care facilities,
including adapting, reconfiguring, or expanding
facilities to respond to the COVID-19 pandemic.
``(B) Prioritized facilities.--The Secretary may
not award a grant to a State under subparagraph (A)
unless the State involved agrees, with respect to the
use of grant funds, to prioritize--
``(i) child care facilities primarily
serving low-income populations;
``(ii) child care facilities primarily
serving children who have not attained the age
of 5 years;
``(iii) child care facilities that closed
during the COVID-19 pandemic and are unable to
open without making modifications to the
facility that would otherwise be required to
ensure the health and safety of children and
staff; and
``(iv) child care facilities that serve the
children of parents classified as essential
workers during the COVID-19 pandemic.
``(C) Duration of grants.--A grant under this
subsection shall be awarded for a period of not more
than 5 years.
``(D) Application.--To seek a grant under this
subsection, a State shall submit to the Secretary an
application at such time, in such manner, and
containing such information as the Secretary may
require, which information shall--
``(i) be disaggregated as the Secretary may
require; and
``(ii) include a plan to use a portion of
the grant funds to report back to the Secretary
on the impact of using the grant funds to
improve child care facilities.
``(E) Priority.--In selecting States for grants
under this subsection, the Secretary shall prioritize
States that--
``(i) plan to improve center-based and
home-based child care programs, which may
include a combination of child care and early
Head Start or Head Start programs;
``(ii) aim to meet specific needs across
urban, suburban, or rural areas as determined
by the State; and
``(iii) show evidence of collaboration
with--
``(I) local government officials;
``(II) other State agencies;
``(III) nongovernmental
organizations, such as--
``(aa) organizations within
the philanthropic community;
``(bb) certified community
development financial
institutions as defined in
section 103 of the Community
Development Banking and
Financial Institutions Act of
1994 (12 U.S.C. 4702) that have
been certified by the Community
Development Financial
Institutions Fund (12 U.S.C.
4703); and
``(cc) organizations that
have demonstrated experience
in--
``(AA) providing
technical or financial
assistance for the
acquisition,
construction,
renovation, or
improvement of child
care facilities;
``(BB) providing
technical, financial,
or managerial
assistance to child
care providers; and
``(CC) securing
private sources of
capital financing for
child care facilities
or other low-income
community development
projects; and
``(IV) local community
organizations, such as--
``(aa) child care
providers;
``(bb) community care
agencies;
``(cc) resource and
referral agencies; and
``(dd) unions.
``(F) Consideration.--In selecting States for
grants under this subsection, the Secretary shall
consider--
``(i) whether the applicant--
``(I) has or is developing a plan
to address child care facility needs;
and
``(II) demonstrates the capacity to
execute such a plan; and
``(ii) after the date the report required
by subsection (b)(1)(C) is submitted to the
Congress, the needs of the applicants based on
the results of the assessment.
``(G) Diversity of awards.--In awarding grants
under this section, the Secretary shall give equal
consideration to States with varying capacities under
subparagraph (F).
``(H) Matching requirement.--
``(i) In general.--As a condition for the
receipt of a grant under subparagraph (A), a
State that is not an Indian tribe shall agree
to make available (directly or through
donations from public or private entities)
contributions with respect to the cost of the
activities to be carried out pursuant to
subparagraph (A), which may be provided in cash
or in kind, in an amount equal to 10 percent of
the funds provided through the grant.
``(ii) Determination of amount
contributed.--Contributions required by clause
(i) may include--
``(I) amounts provided by the
Federal Government, or services
assisted or subsidized to any
significant extent by the Federal
Government; or
``(II) philanthropic or private-
sector funds.
``(I) Report.--Not later than 6 months after the
last day of the grant period, a State receiving a grant
under this paragraph shall submit a report to the
Secretary as described in subparagraph (D)--
``(i) to determine the effects of the grant
in constructing, renovating, or improving child
care facilities, including any changes in
response to the COVID-19 pandemic and any
effects on access to and quality of child care;
and
``(ii) to provide such other information as
the Secretary may require.
``(J) Amount limit.--The annual amount of a grant
under this paragraph may not exceed $35,000,000.
``(2) Grants to intermediary organizations.--
``(A) In general.--The Secretary may award grants
to intermediary organizations, such as certified
community development financial institutions, tribal
organizations, or other organizations with demonstrated
experience in child care facilities financing, for the
purpose of providing technical assistance, capacity
building, and financial products to develop or finance
child care facilities.
``(B) Application.--A grant under this paragraph
may be made only to intermediary organizations that
submit to the Secretary an application at such time, in
such manner, and containing such information as the
Secretary may require.
``(C) Priority.--In selecting intermediary
organizations for grants under this subsection, the
Secretary shall prioritize intermediary organizations
that--
``(i) demonstrate experience in child care
facility financing or related community
facility financing;
``(ii) demonstrate the capacity to assist
States and local governments in developing
child care facilities and programs;
``(iii) demonstrate the ability to leverage
grant funding to support financing tools to
build the capacity of child care providers,
such as through credit enhancements;
``(iv) propose to meet a diversity of needs
across States and across urban, suburban, and
rural areas at varying types of center-based,
home-based, and other child care settings,
including early care programs located in
freestanding buildings or in mixed-use
properties; and
``(v) propose to focus on child care
facilities primarily serving low-income
populations and children who have not attained
the age of 5 years.
``(D) Amount limit.--The amount of a grant under
this paragraph may not exceed $10,000,000.
``(3) Report.--Not later than the end of fiscal year 2024,
the Secretary shall submit to the Congress a report on the
effects of the grants provided under this subsection, and make
the report publically accessible.
``(d) Limitations on Authorization of Appropriations.--
``(1) In general.--To carry out this section, there is
authorized to be appropriated $10,000,000,000 for fiscal year
2020, which shall remain available through fiscal year 2024.
``(2) Reservations of funds.--
``(A) Indian tribes.--The Secretary shall reserve 3
percent of the total amount made available to carry out
this section, for payments to Indian tribes.
``(B) Territories.--The Secretary shall reserve 3
percent of the total amount made available to carry out
this section, for payments to territories.
``(3) Grants for intermediary organizations.--Not less than
10 percent and not more than 15 percent of the total amount
made available to carry out this section may be used to carry
out subsection (c)(2).
``(4) Limitation on use of funds for needs assessments.--
Not more than $5,000,000 of the amounts made available to carry
out this section may be used to carry out subsection (b).
``(e) Definition of State.--In this section, the term `State' has
the meaning provided in section 419, except that it includes the
Commonwealth of the Northern Mariana Islands and any Indian tribe.''.
(b) Exemption of Territory Grants From Limitation on Total Payments
to the Territories.--Section 1108(a)(2) of such Act (42 U.S.C.
1308(a)(2)) is amended by inserting ``418A(c),'' after ``413(f),''.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Appropriations, and in addition to the Committees on the Budget, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Appropriations, and in addition to the Committees on the Budget, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Appropriations, and in addition to the Committees on the Budget, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Rules Committee Resolution H. Res. 1053 Reported to House. Rule provides for consideration of H.R. 6395, H.R. 7027, H.R. 7327 and H.R. 1957. Provides for the consideration of H.R. 6395, H.R. 7027, H.R. 7327, and the Senate Amendments to H.R. 1957. Rule also provides that H.Res. 967, as amended by H.Res. 1017, is further amended by inserting a new date.
Considered under the provisions of rule H. Res. 1053. (consideration: CR H3908-3921)
Rule provides for consideration of H.R. 6395, H.R. 7027, H.R. 7327 and H.R. 1957. Provides for the consideration of H.R. 6395, H.R. 7027, H.R. 7327, and the Senate Amendments to H.R. 1957. Rule also provides that H.Res. 967, as amended by H.Res. 1017, is further amended by inserting a new date.
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DEBATE - The House proceeded with one hour of debate on H.R. 7327.
The previous question was ordered pursuant to the rule.
POSTPONED PROCEEDINGS - Pursuant to clause 8 of rule XX, further proceedings on H.R. 7327 were postponed.
Considered as unfinished business. (consideration: CR H3966)
UNFINISHED BUSINESS - The Chair announced that the unfinished business was on passage of H.R. 7327, which was debated earlier and on which further proceedings had been postponed.
Passed/agreed to in House: On passage Passed by the Yeas and Nays: 250 - 161 (Roll no. 172).
Roll Call #172 (House)On passage Passed by the Yeas and Nays: 250 - 161 (Roll no. 172). (text: CR H3908-3913)
Roll Call #172 (House)Motion to reconsider laid on the table Agreed to without objection.
Received in the Senate and Read twice and referred to the Committee on Appropriations.