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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 5254 Introduced in Senate (IS)]

<DOC>

118th CONGRESS
  2d Session
                                S. 5254

  To amend the Internal Revenue Code of 1986 to enhance the employer-
                      provided child care credit.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           September 25, 2024

 Mr. Bennet (for himself and Mrs. Blackburn) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL

 
  To amend the Internal Revenue Code of 1986 to enhance the employer-
                      provided child care credit.

    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 ``Child Care for American Families 
Act''.

SEC. 2. INCREASE 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 any qualified child 
                        care expenditures of an eligible small 
                        business, 50 percent, and
                            ``(iii) in the case of any qualified child 
                        care expenditures paid or incurred in 
                        connection with a qualified child care facility 
                        located in a eligible census tract, 60 percent.
                    ``(B) Eligible small business.--For purposes of 
                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 taxable 
                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.

SEC. 3. GUIDANCE REGARDING MULTI-EMPLOYER FACILITIES.

    Section 45F of the Internal Revenue Code of 1986 is amended by 
adding at the end the following new subsection:
    ``(g) Guidance.--The Secretary shall issue such guidance as may be 
necessary to carry out the purposes of this section, including guidance 
on the application of this section to multi-employer facilities.''.

SEC. 4. DISSEMINATION OF INFORMATION.

    (a) In General.--Not later than 1 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 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.
                                 <all>
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