118 HR 8540 IH: Child Care for American Families Act U.S. House of Representatives 2024-05-23 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I118th CONGRESS2d SessionH. R. 8540IN THE HOUSE OF REPRESENTATIVESMay 23, 2024Mr. Kustoff (for himself, Mr. Schneider, Ms. Tenney, and Ms. Sewell) introduced the following bill; which was referred to the Committee on Ways and MeansA BILLTo amend the Internal Revenue Code of 1986 to enhance the employer-provided child care credit.

1.

Short title

This Act may be cited as the Child Care for American Families Act.

2.

Increased 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 qualified child care expenditures of an eligible small business, 50 percent, and(iii)in the case of any qualified child care expenditures paid in connection with a qualified child care facility located in a qualified census tract, 60 percent.(B)

Eligible small business

For purposes of subsection 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 calendar 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 census tract

(i)

In general

For purposes of subparagraph (A), the term eligible census tract means any population census tract which—(I)is described in section 45D(e), or(II)is not an urban area.(ii)

Urban area

For purposes of this subparagraph, the term urban area means a census tract (as defined by the Bureau of the Census) which, according to the most recent decennial census, has been designated as an urban area by the Secretary of Commerce..(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.

3.

Rules of application for multi-employer facilities

Section 45F of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:(g)

Regulations

The Secretary shall issue such regulations or other guidance as may be necessary to carry out the purposes of this section, including guidance on the application of this section to multiple employers jointly acquiring, constructing, or operating a qualified child care facility..

4.

Dissemination of information

(a)

In general

Not later than one 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 the 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.