I 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Right Start Child Care 

3 and Education Act of 2007’’. 

4 SEC. 2. INCREASE IN EMPLOYER-PROVIDED CHILD CARE 

5 CREDIT. 

6 (a) INCREASE IN CREDITABLE PERCENTAGE OF

7 CHILD CARE EXPENDITURES.—Paragraph (1) of section 

8 45F(a) of the Internal Revenue Code of 1986 is amended 

9 by striking ‘‘25 percent’’ and inserting ‘‘35 percent’’. 

10 (b) INCREASE IN CREDITABLE PERCENTAGE OF RE11 SOURCE AND REFERRAL EXPENDITURES.—Paragraph (2) 

12 of section 45F(a) of such Code is amended by striking 

13 ‘‘10 percent’’ and inserting ‘‘20 percent’’. 

14 (c) INCREASE IN MAXIMUM CREDIT.—Subsection (b) 

15 of section 45F of such Code is amended by striking 

16 ‘‘$150,000’’ and inserting ‘‘$225,000’’. 

17 (d) EFFECTIVE DATE.—The amendments made by 

18 this section shall apply to taxable years beginning after 

19 the date of the enactment of this Act. 

20 SEC. 3. INCREASE IN CHILD CARE CREDIT. 

21 (a) INCREASE IN DOLLAR LIMIT ON AMOUNT CRED22 ITABLE.—Subsection (c) of section 21 of the Internal Rev23 enue Code of 1986 is amended— 

24 (1) by striking ‘‘$3,000’’ and inserting 

25 ‘‘$5,000’’, and 


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1 (2) by striking ‘‘$6,000’’ and inserting 

2 ‘‘$10,000’’. 

3 (b) INCREASE IN INCOMES ELIGIBLE FOR FULL

4 CREDIT.—Paragraph (2) of section 21(a) of such Code is 

5 amended by striking ‘‘$15,000’’ and inserting ‘‘$20,000’’. 

6 (c) EFFECTIVE DATE.—The amendments made by 

7 this section shall apply to taxable years beginning after 

8 the date of the enactment of this Act. 

9 SEC. 4. 3-YEAR CREDIT FOR INDIVIDUALS HOLDING CHILD 

10 CARE-RELATED DEGREES WHO WORK IN LI11 CENSED CHILD CARE FACILITIES. 

12 (a) IN GENERAL.—Subpart A of part IV of sub13 chapter A of chapter 1 of the Internal Revenue Code of 

14 1986 (relating to nonrefundable personal credits) is 

15 amended by inserting after section 25D the following new 

16 section: 

17 ‘‘SEC. 25E. RIGHT START CHILD CARE AND EDUCATION 

18 CREDIT. 

19 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in20 dividual who is an eligible child care provider for the tax21 able year, there shall be allowed as a credit against the 

22 tax imposed by this chapter for the taxable year the 

23 amount of $2,000. 

24 ‘‘(b) 3-YEAR CREDIT.— 


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1 ‘‘(1) IN GENERAL.—The credit allowable by 

2 subsection (a) for any taxable year to an individual 

3 shall be allowed for such year only if the individual 

4 elects the application of this section for such year. 

5 ‘‘(2) ELECTION.—An election to have this sec6 tion apply may not be made by an individual for any 

7 taxable year if such an election by such individual is 

8 in effect for any 3 prior taxable years. 

9 ‘‘(c) ELIGIBLE CHILD CARE PROVIDER.—For pur10 poses of this section— 

11 ‘‘(1) IN GENERAL.—The term ‘eligible child 

12 care provider’ means, for any taxable year, any indi13 vidual if— 

14 ‘‘(A) as of the close of such taxable year, 

15 such individual holds a bachelor’s degree in 

16 early childhood education, child care, or a re17 lated degree and such degree was awarded by 

18 an eligible educational institution (as defined in 

19 section 25A(f)(2)), and 

20 ‘‘(B) during such taxable year, such indi21 vidual performs at least 1,200 hours of child 

22 care services at a facility if— 

23 ‘‘(i) the principal use of the facility is 

24 to provide child care services, 


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1 ‘‘(ii) no more than 25 percent of the 

2 children receiving child care services at the 

3 facility are children (as defined in section 

4 152(f)) of the individual or such individ5 ual’s spouse, and 

6 ‘‘(iii) the facility meets the require7 ments of all applicable laws and regula8 tions of the State or local government in 

9 which it is located, including the licensing 

10 of the facility as a child care facility. 

11 Subparagraph (B)(i) shall not apply to a facil12 ity which is the principal residence (within the 

13 meaning of section 121) of the operator of the 

14 facility. 

15 ‘‘(2) CHILD CARE SERVICES.—The term ‘child 

16 care services’ means child care and early childhood 

17 education.’’. 

18 (b) CLERICAL AMENDMENT.—The table of sections 

19 for such subpart A is amended by inserting after the item 

20 relating to section 25D the following new item: 

‘‘Sec. 25E. Right Start Child Care and Education Credit.’’. 

21 (c) EFFECTIVE DATE.—The amendments made by 

22 this section shall apply to taxable years beginning after 

23 the date of the enactment of this Act. 

Æ 


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