This bill adds a new tax credit called the child care supply credit to the Internal Revenue Code. The credit applies to employers who increase wages paid to child care workers. For each taxable year, the credit equals the lesser of (1) a percentage of qualified child care wages paid that year or (2) the increase in qualified child care wages compared to the prior taxable year. The base percentage is 5 percent and is 7 percent for wages paid at eligible child care facilities located in rural areas. Employers can claim the credit only if their average hourly child care wage for the year is higher than the prior year. The bill defines qualified child care wages, qualified child care workers, and eligible child care facilities (for example, facilities that serve at least six children, receive payment or grants, and comply with state/local laws). The credit is made part of the general business credit, is added to rules for elective payment, and is limited so it cannot be counted with certain other tax benefits. The changes apply to taxable years beginning after the bill becomes law.
No publicly available information on estimated federal costs or revenue effects is included in the bill text. Official cost estimates (for example, from the Congressional Budget Office) are not part of the provided material.
No publicly available information in the bill text or provided metadata describes proponents' arguments or statements.
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