I 

118TH CONGRESS 

2D SESSION H. R. 8540 

To amend the Internal Revenue Code of 1986 to enhance the employerprovided child care credit. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 23, 2024 

Mr. KUSTOFF (for himself, Mr. SCHNEIDER, Ms. TENNEY, and Ms. SEWELL) 

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 enhance 

the employer-provided child care credit. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Child Care for Amer5 ican Families Act’’. 

6 SEC. 2. INCREASED IN EMPLOYER-PROVIDED CHILD CARE 

7 CREDIT AMOUNT. 

8 (a) IN GENERAL.—Section 45F(a)(1) of the Internal 

9 Revenue Code of 1986 is amended by striking ‘‘25 per10 cent’’ and inserting ‘‘the applicable percentage’’. 


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1 (b) APPLICABLE PERCENTAGE.—Section 45F(a) of 

2 such Code, as amended by subsection (a), is amended— 

3 (1) by redesignating paragraphs (1) and (2) as 

4 subparagraphs (A) and (B), respectively, and by 

5 moving the margins of such subparagraphs 2 ems to 

6 the right, 

7 (2) by striking ‘‘For purposes’’ and inserting 

8 the following: 

9 ‘‘(1) CREDIT ALLOWED.—For purposes’’, and 

10 (3) by adding at the end the following new 

11 paragraph: 

12 ‘‘(2) APPLICABLE PERCENTAGE.— 

13 ‘‘(A) IN GENERAL.—For purposes of para14 graph (1)(A), the applicable percentage is— 

15 ‘‘(i) except as otherwise provided in 

16 this paragraph, 40 percent, 

17 ‘‘(ii) in the case of qualified child care 

18 expenditures of an eligible small business, 

19 50 percent, and 

20 ‘‘(iii) in the case of any qualified child 

21 care expenditures paid in connection with a 

22 qualified child care facility located in a 

23 qualified census tract, 60 percent. 

24 ‘‘(B) ELIGIBLE SMALL BUSINESS.—For 

25 purposes of subsection subparagraph (A), the 


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1 term ‘eligible small business’ means, with re2 spect to any taxable year, any taxpayer if the 

3 annual average number of employees employed 

4 by such person during either of the 2 preceding 

5 calendar years was 500 or fewer. For purposes 

6 of the preceding sentence, a preceding taxable 

7 year may be taken into account only if the tax8 payer was in existence throughout the year. 

9 ‘‘(C) ELIGIBLE CENSUS TRACT.— 

10 ‘‘(i) IN GENERAL.—For purposes of 

11 subparagraph (A), the term ‘eligible census 

12 tract’ means any population census tract 

13 which— 

14 ‘‘(I) is described in section 

15 45D(e), or 

16 ‘‘(II) is not an urban area. 

17 ‘‘(ii) URBAN AREA.—For purposes of 

18 this subparagraph, the term ‘urban area’ 

19 means a census tract (as defined by the 

20 Bureau of the Census) which, according to 

21 the most recent decennial census, has been 

22 designated as an urban area by the Sec23 retary of Commerce.’’. 

24 (c) DOLLAR LIMITATION.—Section 45F(b) of such 

25 Code is amended to read as follows: 


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1 ‘‘(b) DOLLAR LIMITATION.— 

2 ‘‘(1) AGGREGATE LIMITATION.—The credit al3 lowable under subsection (a) for any taxable year 

4 shall not exceed $1,200,000. 

5 ‘‘(2) LIMITATION WITH RESPECT TO QUALIFIED

6 CHILD CARE EXPENDITURES.—The aggregate 

7 amount of qualified child care expenditures which 

8 may be taken into account under this section for any 

9 taxable year shall not exceed $2,000,000.’’. 

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

11 this section shall apply to taxable years beginning after 

12 the date of the enactment of this Act. 

13 SEC. 3. RULES OF APPLICATION FOR MULTI-EMPLOYER FA14 CILITIES. 

15 Section 45F of the Internal Revenue Code of 1986 

16 is amended by adding at the end the following new sub17 section: 

18 ‘‘(g) REGULATIONS.—The Secretary shall issue such 

19 regulations or other guidance as may be necessary to carry 

20 out the purposes of this section, including guidance on the 

21 application of this section to multiple employers jointly ac22 quiring, constructing, or operating a qualified child care 

23 facility.’’. 


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1 SEC. 4. DISSEMINATION OF INFORMATION. 

2 (a) IN GENERAL.—Not later than one year after the 

3 date of the enactment of this Act, the Secretary of the 

4 Treasury (or the Secretary’s delegate) shall establish a 

5 public awareness program to inform the taxpayers 

6 about— 

7 (1) the availability of the credit for employer8 provided child care under section 45F of the Inter9 nal Revenue Code of 1986, and 

10 (2) filing procedures for such credit. 

11 (b) METHOD.—In carrying out this section, the Sec12 retary of the Treasury (or the Secretary’s delegate) shall 

13 use appropriate means of communication to ensure aware14 ness by all taxpayers who are eligible for the credit allowed 

15 under section 45F of the Internal Revenue Code of 1986. 

Æ 


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