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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3155 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 3155
To amend the Internal Revenue Code of 1986 to enhance the employer-
provided child care credit.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 1, 2025
Mr. Kustoff (for himself and Ms. Tenney) 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 enhance the employer-
provided child care credit.
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 American Families
Act''.
SEC. 2. INCREASE IN EMPLOYER-PROVIDED CHILD CARE CREDIT AMOUNT.
(a) In General.--Section 45F(a)(1) of the Internal Revenue Code of
1986 is amended by striking ``25 percent'' and inserting ``the
applicable percentage''.
(b) Applicable Percentage.--Section 45F(a) of such Code, as amended
by subsection (a), is amended--
(1) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively, and by moving the
margins of such subparagraphs 2 ems to the right,
(2) by striking ``For purposes'' and inserting the
following:
``(1) Credit allowed.--For purposes'', and
(3) by adding at the end the following new paragraph:
``(2) Applicable percentage.--
``(A) In general.--For purposes of paragraph
(1)(A), the applicable percentage is--
``(i) except as otherwise provided in this
paragraph, 40 percent,
``(ii) in the case of any qualified child
care expenditures of an eligible small
business, 50 percent, and
``(iii) in the case of any qualified child
care expenditures paid or incurred in
connection with a qualified child care facility
located in an eligible area, 60 percent.
``(B) Eligible small business.--For purposes of
subparagraph (A), the term `eligible small business'
means, with respect to any taxable year, any taxpayer
if the annual average number of employees employed by
such person during either of the 2 preceding taxable
years was 500 or fewer. For purposes of the preceding
sentence, a preceding taxable year may be taken into
account only if the taxpayer was in existence
throughout the year.
``(C) Eligible area.--
``(i) In general.--For purposes of
subparagraph (A), the term `eligible area'
means--
``(I) a census tract described in
section 45D(e), or
``(II) a rural county.
``(ii) Rural county.--
``(I) In general.--For purposes of
this subparagraph, the term `rural
county' means a county in which greater
than 50 percent of the population of
such county resides in census blocks
that are designated as rural blocks (as
determined by the Bureau of the Census
according to the most recent decennial
census).
``(II) Designation where no
county.--For purposes of subclause (I),
a rule similar to the rule of section
143(k)(2)(D) shall apply.''.
(c) Dollar Limitation.--Section 45F(b) of such Code is amended to
read as follows:
``(b) Dollar Limitation.--
``(1) Aggregate limitation.--The credit allowable under
subsection (a) for any taxable year shall not exceed
$1,200,000.
``(2) Limitation with respect to qualified child care
expenditures.--The aggregate amount of qualified child care
expenditures which may be taken into account under this section
for any taxable year shall not exceed $2,000,000.''.
(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. GUIDANCE REGARDING MULTI-EMPLOYER FACILITIES.
Section 45F of the Internal Revenue Code of 1986 is amended by
adding at the end the following new subsection:
``(g) Guidance.--The Secretary shall issue such guidance as may be
necessary to carry out the purposes of this section, including guidance
on the application of this section to multi-employer facilities.''.
SEC. 4. DISSEMINATION OF INFORMATION.
(a) In General.--Not later than 1 year after the date of the
enactment of this Act, the Secretary of the Treasury (or the
Secretary's delegate) shall establish a public awareness program to
inform taxpayers about--
(1) the availability of the credit for employer-provided
child care under section 45F of the Internal Revenue Code of
1986, and
(2) filing procedures for such credit.
(b) Method.--In carrying out this section, the Secretary of the
Treasury (or the Secretary's delegate) shall use appropriate means of
communication to ensure awareness by all taxpayers who are eligible for
the credit allowed under section 45F of the Internal Revenue Code of
1986.
SEC. 5. GAO STUDY ON REGULATORY BARRIERS AFFECTING EMPLOYER-PROVIDED
CHILD CARE.
(a) In General.--Not later than 12 months after the date of
enactment of this Act, the Comptroller General of the United States
shall submit to the applicable Congressional committees a report
examining--
(1) State and local licensure and regulatory requirements
affecting child care facilities;
(2) compliance costs and operational barriers for child
care providers, particularly with respect to providers
operating in multiple States; and
(3) opportunities to reduce regulatory burdens while
maintaining safety and quality standards, including how such
improvements could enhance employer participation under section
45F of the Internal Revenue Code of 1986.
(b) Recommendations.--The report described in subsection (a) shall
include recommendations for--
(1) updating, expanding, or otherwise strengthening
regulations affecting child care facilities;
(2) enhancing uniformity across State regulatory frameworks
to facilitate greater employer participation in providing high-
quality child care;
(3) reducing barriers for multi-employer facilities seeking
to make use of the credit provided under section 45F of the
Internal Revenue Code of 1986; and
(4) reducing barriers for multi-state operators seeking to
qualify for the credit provided under section 45F of the
Internal Revenue Code of 1986.
(c) Applicable Congressional Committees.--For purposes of this
section, the term ``applicable Congressional committees'' means--
(1) the Committees on Finance and Health, Education, Labor,
and Pensions of the Senate; and
(2) the Committees on Ways and Means and Education and the
Workforce of the House of Representatives.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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