[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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