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 Min-
nesota, 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 Representa-
tives of the United States of America in Congress assembled, 
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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 RE-
SOURCE 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 CRED-
ITABLE.—Subsection (c) of section 21 of the Internal Rev-
enue Code of 1986 is amended— 
(1) 
by 
striking 
‘‘$3,000’’ 
and 
inserting 
‘‘$5,000’’, and 
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(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 LI-
CENSED CHILD CARE FACILITIES. 
(a) IN GENERAL.—Subpart A of part IV of sub-
chapter 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 in-
dividual who is an eligible child care provider for the tax-
able 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.— 
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‘‘(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 sec-
tion 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 pur-
poses of this section— 
‘‘(1) IN
GENERAL.—The term ‘eligible child 
care provider’ means, for any taxable year, any indi-
vidual 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 re-
lated 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 indi-
vidual 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, 
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‘‘(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 individ-
ual’s spouse, and 
‘‘(iii) the facility meets the require-
ments of all applicable laws and regula-
tions 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 facil-
ity 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. 
Æ 
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