Today, Representatives David Kustoff and Claudia Tenney introduced the Child Care for American Families Act in the House of Representatives. The proposed legislation aims to expand childcare opportunities for working families by enhancing the Employer-Provided Childcare Tax Credit.
“Insufficient access to childcare is a problem that affects families and businesses nationwide,” stated Congressman Kustoff. “That is why I introduced the Child Care for American Families Act, to incentivize businesses to construct and operate childcare centers. This legislation will make it easier for employers to hire and retain employees. I urge my colleagues to support this important bill that will help get families back to work.”
The existing Employer-Provided Childcare Tax Credit, under IRC Section 45F, was created to encourage employers to invest in childcare services and assist working parents with childcare costs while maintaining their participation in the labor market. However, this tax program has not been extensively utilized due to the low credit cap.
The Child Care for American Families Act intends to address these inefficiencies by increasing the credit amount that businesses can claim, focusing on small businesses and those situated in rural areas. It would also permit multiple employers to jointly apply for the credit through a consortium. Moreover, the bill instructs the IRS to initiate an outreach program to raise awareness and educate employers about the credit’s availability and application procedures.
The full text of the bill is available for consultation.
