1331 
‘‘(i) may elect— 
‘‘(I) to have the employer make 
payroll deduction deposits on behalf of 
the individual as payroll deduction 
contributions to an individual retire-
ment account, or 
‘‘(II) to have such payments paid 
to the employee directly in cash, 
‘‘(ii) is treated as having made the 
election under clause (i)(I) at the level de-
termined under paragraph (4)(D) until the 
individual makes an affirmative election 
not to have such contributions made (or to 
have such contributions made at a level 
specified in the affirmative election), and 
‘‘(iii) may elect to modify the manner 
in which such amounts are invested for 
such plan year. 
‘‘(B) ADMINISTRATIVE REQUIREMENTS.— 
‘‘(i) PAYMENTS.—The requirements of 
this subparagraph are met with respect to 
any automatic IRA arrangement if the em-
ployer makes the payments elected or 
treated as elected under subparagraph 
(A)(i) on or before the last day of the 
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month following the month in which the 
compensation otherwise would have been 
payable to the employee in cash. 
‘‘(ii) NOTICE OF ELECTION PERIOD.— 
The requirements of this paragraph shall 
be treated as met with respect to any year 
if the employer notifies each employee eli-
gible to participate, within a reasonable pe-
riod of time before the beginning of such 
year (and, for the first year the employee 
is so eligible, a reasonable period of time 
before the first day such employee is so eli-
gible), of— 
‘‘(I) the opportunity to elect to 
have contributions made, or to be 
treated as so electing, under clause 
(i)(I), or (ii), of subparagraph (A), 
‘‘(II) the opportunity to elect not 
to have payroll deduction contribu-
tions made or to have such contribu-
tions made at a different percentage 
or in a different amount, and 
‘‘(III) the opportunity under sub-
paragraph (A)(iii) to modify the man-
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ner in which such amounts are in-
vested for such year. 
The employer shall provide such notice in 
paper form or, if the employee so elects, in 
electronic form. 
‘‘(C) LIMITS ON CONTRIBUTIONS.—An em-
ployer shall not be treated as failing to satisfy 
the requirements of this section or any other 
provision of this title merely because— 
‘‘(i) aggregate payroll deduction con-
tributions by or on behalf of an individual 
to individual retirement accounts of the in-
dividual exceed the deductible amount in 
effect under section 219(b)(5) (determined 
without regard to subparagraph (B) there-
of) for any taxable year in which any pay-
roll deduction contributions by the em-
ployer under an automatic IRA arrange-
ment are made, or 
‘‘(ii) the employer chooses to limit the 
payroll deduction contributions under this 
subsection on behalf of an employee for 
any calendar year in a manner reasonably 
designed to avoid exceeding such deduct-
ible amount. 
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‘‘(D) DEFAULT
TREATMENT
AS
ROTH 
IRA.—An employee on whose behalf payroll de-
duction contributions are made to an individual 
retirement account under subparagraph (A) 
may elect, at such time and in such manner 
and form as the Secretary may prescribe, 
whether to treat the individual retirement ac-
count as designated as a Roth IRA. If no such 
election is made, the account shall be treated as 
so designated. 
‘‘(E) DEPOSITS
TO
INDIVIDUAL
RETIRE-
MENT ACCOUNTS OF A DESIGNATED TRUSTEE 
OR ISSUER.— 
‘‘(i) IN GENERAL.—An employer shall 
not be treated as failing to satisfy the re-
quirements of this section, or any other 
provision of this title, merely because the 
employer makes all payroll deduction con-
tributions on behalf of all employees (or all 
employees who do not specify an individual 
retirement account, trustee, or issuer to re-
ceive the contributions) to individual retire-
ment accounts specified in clause (ii). 
‘‘(ii) INDIVIDUAL
RETIREMENT
AC-
COUNTS
OTHER
THAN
THOSE
SELECTED 
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BY EMPLOYEE.—An employer may elect to 
have payroll deduction contributions for all 
employees participating in an automatic 
IRA arrangement made to individual re-
tirement accounts of a trustee or issuer 
under the arrangement that has been des-
ignated by the employer, but only if the 
provider of such accounts, and the invest-
ments therein, are identified on the website 
established under subparagraph (F)(iii). 
The preceding sentence shall not apply un-
less each participant is notified in writing 
that the participant’s balance may be 
transferred without cost or penalty to an-
other individual retirement account estab-
lished by or on behalf of the participant. 
Such notice shall be in paper form or, if 
the employee so elects, electronic form. 
‘‘(iii) EMPLOYERS
MAY
PERMIT
EM-
PLOYEE TO CHOOSE IRA.—If the employer 
so elects, the arrangement may provide for 
an employee election to have payroll deduc-
tion contributions made to any individual 
retirement account specified by the em-
ployee. 
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‘‘(iv) REGULATIONS.—The Secretary 
may issue such regulations as are nec-
essary to carry out the purposes of this 
subparagraph, including establishment of 
procedures to assist employers in con-
necting with certified and available pro-
viders of individual retirement accounts 
and to communicate to individuals the im-
portance of investment diversification. 
‘‘(F) MODEL NOTICE, ETC.—The Secretary 
shall— 
‘‘(i) provide a model notice, written in 
a manner calculated to be understandable 
to the average worker, that is simple for 
employers to use— 
‘‘(I) to notify employees of the 
requirement under this section for the 
employer to provide certain employees 
with the opportunity to participate in 
an automatic IRA arrangement, and 
‘‘(II) to satisfy the requirements 
of subparagraph (B)(ii), 
‘‘(ii) provide model forms for enroll-
ment, including automatic enrollment, in 
an automatic IRA arrangement, 
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‘‘(iii) establish a website or other elec-
tronic means that small employers and in-
dividuals can access and use to obtain in-
formation on automatic IRA arrangements 
(including clear, standardized, easy-to-com-
pare information on fees and expenses and 
investment returns in a format prescribed 
by the Secretary) and to obtain notices and 
forms, and 
‘‘(iv) establish a process— 
‘‘(I) for the provider of an auto-
matic IRA arrangement to dem-
onstrate to the Secretary that the ar-
rangement is described in this para-
graph and meets the requirements 
specified in paragraph (1)(B), and 
‘‘(II) to certify any arrangement 
that the Secretary determines so dem-
onstrates, to regularly monitor compli-
ance and update such determinations 
and certifications, and to list all ar-
rangements so certified on the website 
described in clause (iii) as appropriate 
for use by employers and participants. 
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The information referred to in clause (iii) shall 
be provided in a manner designed to assist em-
ployers and providers by facilitating the identi-
fication by employers of private-sector providers 
of individual retirement accounts, including the 
provider’s investment options, that are appro-
priate for use in automatic IRA arrangements. 
‘‘(G) SAFE HARBOR FOR CERTAIN STATE- 
PROVIDED
ARRANGEMENTS.—An arrangement 
facilitated by an employer shall not fail to be 
treated as an automatic IRA arrangement 
merely because such arrangement is provided or 
otherwise offered, in whole or in part, by a 
State. 
‘‘(H) 
INDIVIDUAL
RETIREMENT
AC-
COUNT.—For purposes of this paragraph, the 
term ‘individual retirement account’ shall have 
the meaning given such term by section 408(a), 
except that such term shall include individual 
retirement annuities (as defined in section 
408(b)).’’. 
(2) OTHER RULES APPLICABLE TO AUTOMATIC 
IRA ARRANGEMENTS.— 
(A) PENALTY
FOR
FAILURE
TO
TIMELY 
REMIT CONTRIBUTIONS TO AUTOMATIC IRA AR-
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RANGEMENTS.—Section 4975(c) is amended by 
adding at the end the following new paragraph: 
‘‘(7) SPECIAL RULE FOR AUTOMATIC IRA AR-
RANGEMENTS.—For purposes of paragraph (1), if 
an employer is required under an automatic IRA ar-
rangement (as defined in section 414(aa)(1)(B)) to 
deposit amounts withheld from an employee’s com-
pensation into an individual retirement account 
(within the meaning of section 414(aa)(8)(H)) but 
fails to do so within the time prescribed under sec-
tion 414(aa)(8)(B)(i), such amounts shall be treated 
as assets of the individual retirement account.’’. 
(B) WAIVER OF EARLY WITHDRAWAL PEN-
ALTY FOR CERTAIN DISTRIBUTIONS FOLLOWING 
INITIAL ELECTION TO PARTICIPATE IN AUTO-
MATIC
IRA
ARRANGEMENT.—Section 72(t) is 
amended by adding at the end the following 
new paragraph: 
‘‘(11) 
DISTRIBUTION
FOLLOWING
INITIAL 
ELECTION TO PARTICIPATE IN AUTOMATIC IRA AR-
RANGEMENT.—Paragraph (1) shall not apply in the 
case of a distribution— 
‘‘(A) to an individual from an individual 
retirement account (within the meaning of sec-
tion 414(aa)(8)(H)) that is part of an auto-
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matic IRA arrangement (as defined in section 
414(aa)(8)(A)), and 
‘‘(B) made not later than 90 days after the 
initial 
election 
under 
section 
414(aa)(8)(A)(ii).’’. 
(C) AUTOMATIC IRA ADVISORY GROUP.— 
(i) IN GENERAL.—Not later than 90 
days after the date of the enactment of 
this Act, the Secretary of the Treasury 
shall establish an Automatic IRA Advisory 
Group (hereinafter in this subparagraph 
referred to as the ‘‘Advisory Group’’). The 
purpose of the Advisory Group shall be to 
make recommendations, advise, and assist 
in the Secretary’s implementation and ad-
ministration of paragraphs (5), (6), and 
(8) of section 414(aa) of the Internal Rev-
enue Code of 1986 with respect to auto-
matic IRA arrangements in the best finan-
cial interest of savers, including— 
(I) the procedures and criteria 
for the periodic certification, website 
listing, and monitoring of investment 
options that meet the requirements of 
those paragraphs, 
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(II) user-friendly disclosure re-
garding investment returns, terms, 
fees, and expenses to facilitate com-
parison, 
(III) the use of low-cost invest-
ment options, 
(IV) the appropriate use of elec-
tronic and paper methods to provide 
notice and disclosure, 
(V) any possible learnings or effi-
ciencies based on the Secretary’s pro-
cedures and experience in approving 
nonbank individual retirement account 
trustees, and 
(VI) such other related matters 
as may be determined by the Sec-
retary. 
(ii) 
MEMBERSHIP.—The 
Advisory 
Group shall consist of not more than 15 
members and shall be composed of— 
(I) such individuals as the Sec-
retary may consider appropriate to 
provide expertise regarding the finan-
cial needs and challenges of lower- 
and middle-income households, 
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(II) at least one individual who is 
an expert in retirement-related con-
sumer protections or who represents 
the general public, and 
(III) at least one representative 
of the Department of the Treasury. 
(iii) COMPENSATION.—The members 
of the Advisory Group shall serve without 
compensation. 
(iv) ADMINISTRATIVE SUPPORT.—The 
Department of the Treasury shall provide 
appropriate administrative support to the 
Advisory Group, including technical assist-
ance. The Advisory Group may use the 
services and facilities of such Department, 
with or without reimbursement, as deter-
mined by such Department. 
(v) REPORT BY ADVISORY GROUP.— 
Not later than 1 year after the date of the 
enactment of this Act, the Advisory Group 
shall submit to the Secretary of the Treas-
ury a report containing its recommenda-
tions. The Secretary may request that the 
Advisory Group submit subsequent reports. 
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1343 
(b) EXCISE TAX FOR FAILURE TO MAINTAIN OR FA-
CILITATE AUTOMATIC CONTRIBUTION PLANS
OR AR-
RANGEMENTS.— 
(1) IN GENERAL.—Chapter 43 is amended by 
adding at the end the following new section: 
‘‘SEC. 4980J. FAILURE TO MAINTAIN OR FACILITATE AUTO-
MATIC CONTRIBUTION PLANS OR ARRANGE-
MENTS. 
‘‘(a) GENERAL RULE.— 
‘‘(1) IN GENERAL.—There is hereby imposed a 
tax on the failure of an employer to maintain or fa-
cilitate an automatic contribution plan or arrange-
ment. 
‘‘(2) EXCEPTIONS.— 
‘‘(A) Paragraph (1) shall not apply to an 
employer to the extent such employer partici-
pates in an arrangement under a qualified 
State law. 
‘‘(B) Paragraph (1) shall not apply to an 
employer with respect to any employee who is 
eligible to participate in a different automatic 
contribution plan or arrangement than one or 
more other employees of the employer. 
‘‘(b) AMOUNT OF TAX.— 
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‘‘(1) IN GENERAL.—The amount of the tax im-
posed by subsection (a) on any failure with respect 
to an employee shall be $10 for each day in the non-
compliance period with respect to such failure. 
‘‘(2) NONCOMPLIANCE PERIOD.—For purposes 
of this section, the term ‘noncompliance period’ 
means, with respect to any failure, the period— 
‘‘(A) beginning on the date such failure 
first occurs, and 
‘‘(B) ending on the earlier of— 
‘‘(i) the date such failure is corrected, 
or 
‘‘(ii) with respect to any employer, the 
date that is 3 months after the last date 
on which the employee is required to be eli-
gible to participate in an automatic con-
tribution plan or arrangement maintained 
or facilitated by such employer. 
‘‘(3) ADJUSTMENT FOR INFLATION.— 
‘‘(A) IN
GENERAL.—In the case of any 
failure relating to maintaining or facilitating a 
plan or arrangement in a calendar year begin-
ning after 2023, the $10 amount under para-
graph (1) shall be increased by an amount 
equal to such dollar amount multiplied by the 
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cost-of-living adjustment determined under sec-
tion 1(f)(3) for the calendar year determined by 
substituting ‘calendar year 2022’ for ‘calendar 
year 2016’ in subparagraph (A)(ii) thereof. 
‘‘(B) ROUNDING.—If any amount adjusted 
under subparagraph (A) is not a whole dollar 
amount, such amount shall be rounded to the 
nearest whole dollar amount. 
‘‘(c) LIMITATIONS ON AMOUNT OF TAX.— 
‘‘(1) TAX NOT TO APPLY WHERE FAILURE NOT 
DISCOVERED
EXERCISING
REASONABLE
DILI-
GENCE.—No tax shall be imposed by subsection (a) 
on any failure during any period for which it is es-
tablished to the satisfaction of the Secretary that 
none of the persons referred to in subsection (e) 
knew, nor exercising reasonable diligence would have 
known, that such failure existed. 
‘‘(2) TAX NOT TO APPLY TO FAILURES COR-
RECTED WITHIN 91⁄2 MONTHS.—No tax shall be im-
posed by subsection (a) on any failure if— 
‘‘(A) such failure was due to reasonable 
cause and not to willful neglect, and 
‘‘(B) such failure is corrected during the 
91⁄2-month period beginning on the first date 
any of the persons referred to in subsection (e) 
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1346 
knew that such failure existed, or exercising 
reasonable diligence would have known. 
‘‘(3) OVERALL
LIMITATION
FOR
UNINTEN-
TIONAL FAILURES.—In the case of failures which 
are due to reasonable cause and not to willful ne-
glect— 
‘‘(A) GENERAL RULE.—The tax imposed 
by subsection (a) for failures during the taxable 
year of the employer shall not exceed $500,000. 
‘‘(B) TAXABLE
YEARS
IN
THE
CASE
OF 
CERTAIN CONTROLLED GROUPS.—For purposes 
of this subparagraph, if not all persons who are 
treated as a single employer for purposes of this 
section have the same taxable year, the taxable 
years taken into account shall be determined 
under principles similar to the principles of sec-
tion 1561. 
‘‘(4) WAIVER BY SECRETARY.—In the case of a 
failure which is due to reasonable cause and not to 
willful neglect, the Secretary may waive part or all 
of the tax imposed by subsection (a) to the extent 
that the payment of such tax would be excessive rel-
ative to the failure involved. 
‘‘(d) TAX NOT TO APPLY IN CERTAIN CASES.—This 
section shall not apply in the case of— 
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1347 
‘‘(1) any employer with respect to a plan or ar-
rangement that, during the prior calendar year, was 
maintained or facilitated only by employers each of 
which had no more than 5 employees receiving at 
least $5,000 of compensation from the employer for 
such year, 
‘‘(2) any employer with respect to a govern-
mental plan (within the meaning of section 414(d)), 
‘‘(3) any employer with respect to a church plan 
(within the meaning of section 414(e)), or 
‘‘(4) any employer that has been in existence 
for fewer than 2 years, taking into account all pred-
ecessor employers. 
‘‘(e) LIABILITY FOR TAX.—The employer shall be lia-
ble for the tax imposed by subsection (a) on a failure. All 
employers, determined without regard to subsection (f)(2), 
shall be jointly and severally liable for the liability of any 
other employer with which they are aggregated under sub-
section (f)(2). 
‘‘(f) DEFINITIONS.—For purposes of this section— 
‘‘(1) AUTOMATIC CONTRIBUTION PLAN OR AR-
RANGEMENT.—The term ‘automatic contribution 
plan or arrangement’ has the meaning given such 
term under section 414(aa), and 
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1348 
‘‘(2) EMPLOYER.—The term ‘employer’ includes 
all employers treated as a single employer under 
subsection (b), (c), (m), or (o) of section 414. 
‘‘(3) QUALIFIED STATE LAW.—The term ‘quali-
fied State law’ means a State law (as it may be 
amended from time to time) that— 
‘‘(A) was enacted before the date of the 
enactment of the Act to provide for reconcili-
ation pursuant to title II of S. Con. Res. 14, 
and 
‘‘(B)(i) requires certain employers to facili-
tate an automatic IRA arrangement pursuant 
to a payroll deduction savings program of the 
State, or 
‘‘(ii) allows certain employers to contribute 
to, or participate in, a plan described in section 
413(c) of such Code established and maintained 
by the State.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions for chapter 43 is amended by adding at the 
end the following new item: 
‘‘Sec. 4980J. Failure to maintain or facilitate automatic contribution plans or 
arrangements.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after De-
cember 31, 2022. 
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SEC. 131102. DEFERRAL-ONLY ARRANGEMENTS. 
(a) IN GENERAL.—Section 401(k) is amended by 
adding at the end the following new paragraph: 
‘‘(16) DEFERRAL-ONLY ARRANGEMENT.— 
‘‘(A) IN
GENERAL.—A deferral-only ar-
rangement shall be treated as meeting the re-
quirements of paragraph (3)(A)(ii). 
‘‘(B) DEFERRAL-ONLY
ARRANGEMENT.— 
For purposes of this paragraph, the term ‘de-
ferral-only arrangement’ means any cash or de-
ferred arrangement which meets— 
‘‘(i) the automatic deferral require-
ments of subparagraph (C), 
‘‘(ii) the elective contribution require-
ment of subparagraph (D), and 
‘‘(iii) the requirements of subpara-
graph (E) of paragraph (13). 
‘‘(C) AUTOMATIC DEFERRAL.— 
‘‘(i) IN GENERAL.—The requirements 
of this subparagraph shall be treated as 
met if, under the arrangement, each em-
ployee eligible to participate in the ar-
rangement is treated as having elected to 
have the employer make elective contribu-
tions in an amount equal to the qualified 
percentage of compensation. 
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‘‘(ii) ELECTION
OUT.—The election 
treated as having been made under clause 
(i) shall cease to apply with respect to any 
employee if such employee makes an af-
firmative election— 
‘‘(I) to not have such contribu-
tions made, or 
‘‘(II) to make elective contribu-
tions at a level specified in such af-
firmative election. 
‘‘(iii) QUALIFIED PERCENTAGE.—For 
purposes of this subparagraph, with re-
spect to any employee, the term ‘qualified 
percentage’ means, in lieu of the meaning 
given such term in paragraph (13)(C)(iii), 
any percentage determined under the ar-
rangement if such percentage is applied 
uniformly, does not exceed 15 percent (10 
percent during the period described in sub-
clause (I)) and is at least— 
‘‘(I) 6 percent during the period 
ending on the last day of the first 
plan year which begins after the date 
on which the first elective contribution 
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described in clause (i) is made with 
respect to such employee, 
‘‘(II) 7 percent during the first 
plan year following the plan year de-
scribed in subclause (I), 
‘‘(III) 8 percent during the first 
plan year following the plan year de-
scribed in subclause (II), 
‘‘(IV) 9 percent during the first 
plan year following the plan year de-
scribed in subclause (III), and 
‘‘(V) 10 percent during any sub-
sequent plan year. 
‘‘(D) ELECTIVE CONTRIBUTIONS.— 
‘‘(i) IN GENERAL.—The requirements 
of this subparagraph are met if under the 
plan containing the arrangement— 
‘‘(I) the only contributions which 
may be made are elective contribu-
tions of employees who are eligible to 
participate in the arrangement, and 
‘‘(II) the aggregate amount of 
such elective contributions which may 
be made with respect to any employee 
for any calendar year shall not exceed 
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the amount in effect for the taxable 
year under section 219(b)(5) (deter-
mined without regard to subpara-
graph (B) thereof). 
‘‘(ii) CROSS REFERENCE.—For catch- 
up contributions for individuals age 50 or 
over, see section 414(v).’’. 
(b) CATCH-UP CONTRIBUTIONS
FOR INDIVIDUALS 
AGE 50 AND OVER.— 
(1) Section 414(v)(2)(B)(i) is amended by in-
serting ‘‘, 401(k)(16),’’ after ‘‘401(k)(11)’’. 
(2) Section 414(v)(2)(B) is amended by adding 
at the end thereof the following clause: 
‘‘(iii) In the case of an applicable em-
ployer 
plan 
described 
in 
section 
401(k)(16), the applicable dollar amount is 
$1,000.’’. 
(3) Section 414(v)(2)(C) is amended— 
(A) by striking ‘‘(B)(i) and’’ and inserting 
‘‘(B)(i),’’ and by inserting after ‘‘subparagraph 
(B)(ii)’’ the following: ‘‘, and the $1,000 
amount described in subparagraph (B)(iii)’’, 
(B) inserting after ‘‘2005’’ the following: 
‘‘(the calendar quarter beginning July 1, 2020, 
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in the case of the $1,000 amount described in 
subparagraph (B)(iii))’’, and 
(C) by inserting before the period at the 
end the following ‘‘($100 in the case of an in-
crease in the amount described in subparagraph 
(B)(iii) which is not a multiple of $100)’’. 
(c) PLANS NOT TREATED AS TOP-HEAVY PLANS.— 
Section 416(g)(4)(H)(i) is amended by striking ‘‘or 
401(k)(13)’’ and inserting ‘‘401(k)(13), or 401(k)(16)’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to plan years beginning after De-
cember 31, 2022. 
SEC. 131103. INCREASE IN CREDIT LIMITATION FOR SMALL 
EMPLOYER PENSION PLAN STARTUP COSTS 
INCLUDING FOR AUTOMATIC CONTRIBUTION 
PLAN OR ARRANGEMENT. 
(a) YEARS FOR WHICH CREDIT IS ALLOWED.—Sec-
tion 45E(b)(1) is amended by striking ‘‘2 taxable years’’ 
and inserting ‘‘4 taxable years’’. 
(b) SPECIAL RULE FOR EMPLOYERS WITH 25 OR 
FEWER EMPLOYEES.—Section 45E(a) is amended by in-
serting before the period at the end the following: ‘‘(100 
percent of such costs in the case of an eligible employer 
with 25 or fewer employees, as determined by substituting 
‘25’ for ‘100’ in section 408(p)(2)(C)(i))’’. 
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(c) CREDIT NOT TO APPLY TO CERTAIN PLANS OR 
ARRANGEMENTS.— 
(1) NO CREDIT WITH RESPECT TO DEFERRAL- 
ONLY
ARRANGEMENTS.—Section 
45E(d)(2) 
is 
amended by inserting ‘‘(other than a deferral-only 
arrangement (as defined in section 401(k)(16)(B))’’ 
before the period at the end. 
(2) TERMINATION
WITH
RESPECT
TO
PLANS 
OTHER THAN AUTOMATIC CONTRIBUTION PLANS OR 
ARRANGEMENTS.—Section 45E is amended by add-
ing at the end the following new subsection: 
‘‘(f) CREDIT TERMINATED
FOR NON-AUTOMATIC 
CONTRIBUTION
PLANS
OR
ARRANGEMENTS
AFTER 
2022.—In the case of taxable years beginning after De-
cember 31, 2022, no credit shall be allowed under this sec-
tion for amounts paid or incurred with respect to an eligi-
ble employer plan that is not an automatic contribution 
plan or arrangement (as defined in section 414(aa)).’’. 
(d) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2021. 
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SEC. 131104. CREDIT FOR CERTAIN SMALL EMPLOYER 
AUTOMATIC RETIREMENT ARRANGEMENTS. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 is amended by adding at the end 
the following new section: 
‘‘SEC. 45U. CREDIT FOR CERTAIN SMALL EMPLOYER AUTO-
MATIC RETIREMENT ARRANGEMENTS. 
‘‘(a) GENERAL RULE.—For purposes of section 38, 
in the case of an eligible employer, the small employer 
automatic retirement arrangement credit determined 
under this section for any taxable year in the credit period 
is $500. 
‘‘(b) DEFINITIONS.—For purposes of this section— 
‘‘(1) ELIGIBLE EMPLOYER.—The term ‘eligible 
employer’ means, with respect to the calendar year 
in which the taxable year begins, an employer 
which— 
‘‘(A)(i) participates in an automatic IRA 
arrangement (as defined in section 414(aa)(8)), 
or 
an 
arrangement 
described 
in 
4980J(a)(2)(A), or 
‘‘(ii) maintains a deferral-only arrange-
ment (as defined in section 401(k)(16)), 
‘‘(B) is described in 408(p)(2)(C)(i), and 
‘‘(C) did not maintain an eligible employer 
plan during the portion of the calendar year 
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preceding the commencement of such arrange-
ment, or adoption of such deferral-only arrange-
ment, and the 2 preceding calendar years. 
‘‘(2) CREDIT PERIOD.—The term ‘credit period’ 
means the first 4 calendar years beginning after the 
date of the enactment of this section in which the 
eligible employer participates in the arrangement or 
maintains the deferral-only arrangement. 
‘‘(3) ELIGIBLE
EMPLOYER
PLAN.—The term 
‘eligible employer plan’ means a qualified employer 
plan within the meaning of section 4972(d). 
‘‘(c) OTHER RULES.—For purposes of this section, 
the rules of section 45E(e) shall apply.’’. 
(b) CREDIT ALLOWED AS PART OF GENERAL BUSI-
NESS CREDIT.—Section 38(b) of is amended by striking 
‘‘plus’’ at the end of paragraph (32), by striking the period 
at the end of paragraph (33) and inserting ‘‘, plus’’, and 
by adding at the end the following new paragraph: 
‘‘(34) the small employer automatic retirement 
arrangement 
credit 
determined 
under 
section 
45U(a).’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
is amended by adding at the end the following new item: 
‘‘Sec. 45U. Credit for certain small employer automatic retirement arrange-
ments.’’. 
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(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2021. 
PART 2—SAVER’S MATCH 
SEC. 131201. MATCHING PAYMENTS FOR ELECTIVE DEFER-
RAL AND IRA CONTRIBUTIONS BY CERTAIN 
INDIVIDUALS. 
(a) IN GENERAL.—Subchapter B of chapter 65 is 
amended by adding at the end the following new section: 
‘‘SEC. 6433. MATCHING PAYMENTS FOR ELECTIVE DEFER-
RAL AND IRA CONTRIBUTIONS BY CERTAIN 
INDIVIDUALS. 
‘‘(a) IN GENERAL.— 
‘‘(1) ALLOWANCE OF CREDIT.—Any eligible in-
dividual who makes qualified retirement savings con-
tributions for the taxable year shall be allowed a 
credit for such taxable year in an amount equal to 
the applicable percentage of so much of the qualified 
retirement savings contributions made by such eligi-
ble individual for the taxable year as does not exceed 
$1,000. 
‘‘(2) PAYMENT OF CREDIT.—The credit under 
this section shall be— 
‘‘(A) treated as allowed by subpart C of 
part IV of subchapter A of chapter 1, and 
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‘‘(B) paid by the Secretary as a contribu-
tion (as soon as practicable after the eligible in-
dividual has filed a tax return making a claim 
for such credit for the taxable year) to the ap-
plicable retirement savings vehicle of an eligible 
individual. 
‘‘(b) APPLICABLE PERCENTAGE.—For purposes of 
this section— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the applicable percentage is 50 percent. 
‘‘(2) PHASEOUT.—The percentage under para-
graph (1) shall be reduced (but not below zero) by 
the number of percentage points which bears the 
same ratio to 50 percentage points as— 
‘‘(A) the excess of— 
‘‘(i) the taxpayer’s modified adjusted 
gross income for such taxable year, over 
‘‘(ii) the applicable dollar amount, 
bears to 
‘‘(B) the phaseout range. 
If any reduction determined under this paragraph is 
not a whole percentage point, such reduction shall be 
rounded to the next lowest whole percentage point. 
‘‘(3) APPLICABLE DOLLAR AMOUNT; PHASEOUT 
RANGE.— 
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‘‘(A) JOINT
RETURNS.—Except as pro-
vided in subparagraph (B)— 
‘‘(i) the applicable dollar amount is 
$50,000, and 
‘‘(ii) the phaseout range is $20,000. 
‘‘(B) OTHER RETURNS.—In the case of— 
‘‘(i) a head of a household (as defined 
in section 2(b)), the applicable dollar 
amount and the phaseout range shall be 3⁄4 
of the amounts applicable under subpara-
graph (A) (as adjusted under subsection 
(h)), and 
‘‘(ii) any taxpayer who is not filing a 
joint return and who is not a head of a 
household (as so defined), the applicable 
dollar amount and the phaseout range 
shall be 1⁄2 of the amounts applicable 
under subparagraph (A) (as so adjusted). 
‘‘(4) EXCEPTION; MINIMUM
CREDIT.—In the 
case of an eligible individual with respect to whom 
(without regard to this paragraph) the credit deter-
mined under subsection (a)(1) is greater than zero 
but less than $100, the credit allowed under this 
section shall be $100. 
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‘‘(c) ELIGIBLE INDIVIDUAL.—For purposes of this 
section— 
‘‘(1) IN
GENERAL.—The term ‘eligible indi-
vidual’ means any individual if such individual has 
attained the age of 18 as of the close of the taxable 
year. 
‘‘(2) DEPENDENTS AND FULL-TIME STUDENTS 
NOT ELIGIBLE.—The term ‘eligible individual’ shall 
not include— 
‘‘(A) any individual with respect to whom 
a deduction under section 151 is allowed to an-
other taxpayer for a taxable year beginning in 
the calendar year in which such individual’s 
taxable year begins, and 
‘‘(B) any individual who is a student (as 
defined in section 152(f)(2)). 
‘‘(d) QUALIFIED RETIREMENT SAVINGS CONTRIBU-
TIONS.—For purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘qualified retire-
ment savings contributions’ means, with respect to 
any taxable year, the sum of— 
‘‘(A) the amount of the qualified retire-
ment contributions (as defined in section 
219(e)) made by the eligible individual, 
‘‘(B) the amount of— 
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‘‘(i) any elective deferrals (as defined 
in section 402(g)(3)) of such individual, 
and 
‘‘(ii) any elective deferral of com-
pensation by such individual under an eli-
gible deferred compensation plan (as de-
fined in section 457(b)) of an eligible em-
ployer described in section 457(e)(1)(A), 
‘‘(C) the amount of voluntary employee 
contributions by such individual to any qualified 
retirement plan (as defined in section 4974(c)), 
and 
‘‘(D) the amount of contributions made by 
such individual to the ABLE account (within 
the meaning of section 529A) of which such in-
dividual is the designated beneficiary. 
Such term shall not include any amount attributable 
to a payment under subsection (a)(2). 
‘‘(2) REDUCTION
FOR
CERTAIN
DISTRIBU-
TIONS.— 
‘‘(A) IN GENERAL.—The qualified retire-
ment savings contributions determined under 
paragraph (1) for a taxable year shall be re-
duced (but not below zero) by the aggregate 
distributions received by the individual during 
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the testing period from any entity of a type to 
which contributions under paragraph (1) may 
be made. 
‘‘(B) TESTING PERIOD.—For purposes of 
subparagraph (A), the testing period, with re-
spect to a taxable year, is the period which in-
cludes— 
‘‘(i) such taxable year, 
‘‘(ii) the 2 preceding taxable years, 
and 
‘‘(iii) the period after such taxable 
year and before the due date (including ex-
tensions) for filing the return of tax for 
such taxable year. 
‘‘(C) EXCEPTED
DISTRIBUTIONS.—There 
shall not be taken into account under subpara-
graph (A)— 
‘‘(i) any distribution referred to in 
section 
72(p), 
401(k)(8), 
401(m)(6), 
402(g)(2), 404(k), or 408(d)(4), 
‘‘(ii) any distribution to which section 
408(d)(3) or 408A(d)(3) applies, 
‘‘(iii) any portion of a distribution if 
such portion is transferred or paid in a 
rollover contribution (as defined in section 
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402(c), 403(a)(4), 403(b)(8), 408A(e), or 
457(e)(16)) to an account or plan to which 
qualified retirement contributions can be 
made, and 
‘‘(iv) the amount of distributions 
under a qualified ABLE program (within 
the meaning of section 529A) that is equal 
to amounts not included in gross income 
with respect to such distributions under 
section 529A(c)(1)(B) (relating to distribu-
tions for qualified disability expenses). 
‘‘(D) TREATMENT OF DISTRIBUTIONS RE-
CEIVED BY SPOUSE OF INDIVIDUAL.—For pur-
poses of determining distributions received by 
an individual under subparagraph (A) for any 
taxable year, any distribution received by the 
spouse of such individual shall be treated as re-
ceived by such individual if such individual and 
spouse file a joint return for such taxable year 
and for the taxable year during which the 
spouse receives the distribution. 
‘‘(e) APPLICABLE
RETIREMENT
SAVINGS
VEHI-
CLE.— 
‘‘(1) IN GENERAL.—The term ‘applicable retire-
ment savings vehicle’ means an account or plan 
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elected by the eligible individual under paragraph 
(2). 
‘‘(2) ELECTION.—Any such election to have 
contributed the amount determined under subsection 
(a) shall be to an account or plan which— 
‘‘(A) is a Roth IRA or a designated Roth 
account (within the meaning of section 402A) 
of an applicable retirement plan (as defined in 
section 402A(e)(1)), 
‘‘(B) is for the benefit of the eligible indi-
vidual, 
‘‘(C) accepts contributions made under this 
section, and 
‘‘(D) is designated by such individual (in 
such form and manner as the Secretary may 
provide). 
‘‘(f) OTHER DEFINITIONS AND SPECIAL RULES.— 
‘‘(1) MODIFIED
ADJUSTED
GROSS
INCOME.— 
For purposes of this section, the term ‘modified ad-
justed gross income’ means adjusted gross income— 
‘‘(A) determined without regard to sections 
911, 931, and 933, and 
‘‘(B) determined without regard to any ex-
clusion or deduction allowed for any qualified 
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retirement savings contribution made during 
the taxable year. 
‘‘(2) TREATMENT OF CONTRIBUTIONS.—In the 
case of any contribution under subsection (a)(2)— 
‘‘(A) except as otherwise provided in this 
section or by the Secretary under regulations, 
such contribution shall be treated as— 
‘‘(i) an elective deferral made by the 
individual which is a designated Roth con-
tribution, if contributed to an applicable 
retirement plan, or 
‘‘(ii) as a Roth IRA contribution made 
by such individual, if contributed to a Roth 
IRA, and 
‘‘(B) such contribution shall not be taken 
into account with respect to any applicable limi-
tation 
under 
sections 
402(g)(1), 
403(b), 
408(a)(1), 408(b)(2)(B), 408A(c)(2), 414(v)(2), 
415(c), or 457(b)(2), and shall be disregarded 
for purposes of sections 401(a)(4), 401(k)(3), 
401(k)(11)(B)(i)(III), and 416. 
‘‘(3) TREATMENT OF QUALIFIED PLANS, ETC.— 
A plan or arrangement to which a contribution is 
made under this section shall not be treated as vio-
lating any requirement under section 401, 403, 
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408A, or 457 solely by reason of accepting such con-
tribution. 
‘‘(4) ERRONEOUS CREDITS.— 
‘‘(A) IN GENERAL.—If any contribution is 
erroneously paid under subsection (a)(2), in-
cluding a payment that is not made to an appli-
cable retirement savings vehicle, the amount of 
such erroneous payment shall be treated as an 
underpayment of tax (other than for purposes 
of part II of subchapter A of chapter 68) for 
the taxable year in which the Secretary deter-
mines the payment is erroneous. 
‘‘(B) DISTRIBUTION OF ERRONEOUS CRED-
ITS.—In the case of a contribution to which 
subparagraph (A) applies— 
‘‘(i) section 72 shall not apply to the 
distribution of such contribution (and any 
income attributable thereto) if such dis-
tribution is received not later than the day 
prescribed by law (including extensions of 
time) for filing the individual’s return for 
such taxable year, and 
‘‘(ii) any plan or arrangement from 
which such a distribution is made under 
this subparagraph shall not be treated as 
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violating any requirement under section 
401, 403, 408A, or 457 solely by reason of 
making such distribution. 
‘‘(g) PROVISION BY SECRETARY OF INFORMATION 
RELATING
TO
CONTRIBUTIONS.—In the case of an 
amount elected by an eligible individual to be contributed 
to an account or plan under subsection (e)(2), the Sec-
retary shall provide guidance to the custodian of the ac-
count or the plan sponsor, as the case may be, detailing 
the treatment of such contribution under subsection (f)(2) 
and the reporting requirements with respect to such con-
tribution under section 131201(c)(2) of the Act to provide 
for reconciliation pursuant to title II of S. Con. Res. 14. 
‘‘(h) INFLATION ADJUSTMENTS.— 
‘‘(1) IN GENERAL.—In the case of any taxable 
year beginning in a calendar year after 2020, each 
of the dollar amounts in subsections (a)(1) and 
(b)(3)(A)(i) shall be increased by an amount equal 
to— 
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar 
year in which the taxable year begins, deter-
mined by substituting ‘calendar year 2019’ for 
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‘calendar year 2016’ in subparagraph (A)(ii) 
thereof. 
‘‘(2) ROUNDING.—Any increase determined 
under paragraph (1) shall be rounded to the nearest 
multiple of— 
‘‘(A) $100 in the case of an adjustment of 
the amount in subsection (a)(1), and 
‘‘(B) $1,000 in the case of an adjustment 
of the amount in subsection (b)(3)(A)(i).’’. 
(b) TREATMENT OF CERTAIN POSSESSIONS.— 
(1) PAYMENTS TO POSSESSIONS WITH MIRROR 
CODE TAX SYSTEMS.—The Secretary of the Treas-
ury shall pay to each possession of the United States 
which has a mirror code tax system amounts equal 
to the loss (if any) to that possession by reason of 
the amendments made by this section. Such 
amounts shall be determined by the Secretary of the 
Treasury based on information provided by the gov-
ernment of the respective possession. 
(2) PAYMENTS TO OTHER POSSESSIONS.—The 
Secretary of the Treasury shall pay to each posses-
sion of the United States which does not have a mir-
ror code tax system amounts estimated by the Sec-
retary of the Treasury as being equal to the aggre-
gate benefits (if any) that would have been provided 
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to residents of such possession by reason of the 
amendments made by this section if a mirror code 
tax system had been in effect in such possession. 
The preceding sentence shall not apply unless the re-
spective possession has a plan, which has been ap-
proved by the Secretary of the Treasury, under 
which such possession will promptly distribute such 
payments to its residents. 
(3) COORDINATION
WITH
CREDIT
ALLOWED 
AGAINST UNITED STATES INCOME TAXES.—No cred-
it shall be allowed against United States income 
taxes under section 6433 of the Internal Revenue 
Code of 1986 (as added by this section) to any per-
son— 
(A) to whom a credit is allowed against 
taxes imposed by the possession by reason of 
the amendments made by this section, or 
(B) who is eligible for a payment under a 
plan described in paragraph (2). 
(4) MIRROR CODE TAX SYSTEM.—For purposes 
of this subsection, the term ‘‘mirror code tax sys-
tem’’ means, with respect to any possession of the 
United States, the income tax system of such posses-
sion if the income tax liability of the residents of 
such possession under such system is determined by 
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reference to the income tax laws of the United 
States as if such possession were the United States. 
(5) TREATMENT OF PAYMENTS.—For purposes 
of section 1324 of title 31, United States Code, the 
payments under this subsection shall be treated in 
the same manner as a refund due from a credit pro-
vision referred to in subsection (b)(2) of such sec-
tion. 
(c) ADMINISTRATIVE PROVISIONS.— 
(1) 
DEFICIENCIES.—Section 
6211(b)(4) 
is 
amended by striking ‘‘and 7527A’’ and inserting 
‘‘7527A, and 6433’’. 
(2) REPORTING.—The Secretary of the Treas-
ury shall— 
(A) amend Form 5500 to require separate 
reporting of the aggregate amount of contribu-
tions received by the plan during the year under 
section 6433 of the Internal Revenue Code of 
1986 (as added by this section), and 
(B) amend Form 5498 to require similar 
reporting with respect to individual retirement 
accounts (as defined in section 408 of such 
Code) and individual retirement annuities (as 
defined in section 408(b) of such Code). 
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1371 
(d) PAYMENT AUTHORITY.—Section 1324(b)(2) of 
title 31, United States Code, is amended by striking ‘‘or 
7527A’’ and inserting ‘‘7527A, or 6433’’. 
(e) CONFORMING AMENDMENTS.— 
(1) Section 25B is amended by striking sub-
sections (a) through (f) and inserting the following: 
‘‘For payment of credit related to qualified retirement sav-
ings contributions, see section 6433.’’. 
(2) The table of sections for subchapter B of 
chapter 65 is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 6433. Matching payments for elective deferral and IRA contributions by 
certain individuals.’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2024. 
SEC. 131202. DEADLINE TO FUND IRA WITH TAX REFUND. 
(a) IN GENERAL.—Section 219(f)(3) is amended— 
(1) by striking ‘‘is made not later than’’ and in-
serting ‘‘is made— 
‘‘(i) not later than’’, 
(2) by striking the period at the end and insert-
ing ‘‘, or’’, and 
(3) by adding at the end the following new 
clause: 
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‘‘(ii) by direct deposit by the Sec-
retary pursuant to an election on the re-
turn for such taxable year to contribute all 
or a portion of any amount owed to the 
taxpayer to an individual retirement ac-
count of the taxpayer, but only if the re-
turn is filed not later than the date de-
scribed in clause (i).’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2022. 
Subtitle C—Child Care Access and 
Equity 
SEC. 132001. CHILD CARE ACCESS. 
Part A of title IV of the Social Security Act (42 
U.S.C. 601–619) is amended by inserting after section 
418 the following: 
‘‘SEC. 418A. CHILD CARE ACCESS. 
‘‘(a) ESTABLISHING STATE CHILD CARE INFORMA-
TION NETWORKS.— 
‘‘(1) DEVELOPMENT.—The Secretary shall con-
duct a stakeholder engagement process to make rec-
ommendations about the development and implemen-
tation of the State Child Care Information Networks 
to be operated by the States, Indian tribes, and ter-
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ritories. The stakeholder engagement process may 
include parents, center-based child care providers, 
home-based child care providers, child care policy ex-
perts, trade associations, labor unions, and other or-
ganizations representing child care providers. 
‘‘(2) MODELS.—The Secretary may use funds 
made available to the Secretary for administrative 
purposes to establish national technology models for 
State Child Care Information Networks, and guid-
ance on development and establishment of interoper-
able data governance systems that address privacy 
and allow for sharing and storing data across infor-
mation systems, including guidance on alignment 
with State child care consumer education websites. 
‘‘(3) DATA EXCHANGE STANDARDS AND INTER-
OPERABILITY.— 
‘‘(A) DESIGNATION AND USE OF DATA EX-
CHANGE STANDARDS.— 
‘‘(i) DESIGNATION.—The Secretary 
shall, in consultation with an interagency 
work group established by the Office of 
Management and Budget and considering 
State government perspectives, designate 
data exchange standards for necessary cat-
egories of information that the Child Care 
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Information Network is required to elec-
tronically exchange with another agency 
under applicable Federal law. 
‘‘(ii) DATA
EXCHANGE
STANDARDS 
MUST
BE
NONPROPRIETARY
AND
INTER-
OPERABLE.—The data exchange standards 
designated under clause (i) shall, to the ex-
tent practicable, be nonproprietary and 
interoperable. 
‘‘(iii) 
OTHER
REQUIREMENTS.—In 
designating data exchange standards under 
this subparagraph, the Secretary shall, to 
the extent practicable, incorporate— 
‘‘(I) interoperable standards de-
veloped and maintained by an inter-
national voluntary consensus stand-
ards body, as defined by the Office of 
Management and Budget; 
‘‘(II) interoperable standards de-
veloped and maintained by intergov-
ernmental partnerships, such as the 
National 
Information 
Exchange 
Model; and 
‘‘(III) 
interoperable 
standards 
developed and maintained by Federal 
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entities with authority over con-
tracting and financial assistance. 
‘‘(B) DATA
EXCHANGE
STANDARDS
FOR 
FEDERAL REPORTING.— 
‘‘(i) DESIGNATION.—The Secretary 
shall, in consultation with an interagency 
work group established by the Office of 
Management and Budget, and considering 
State government perspectives, designate 
data exchange standards to govern Federal 
reporting 
and 
exchange 
requirements 
under applicable Federal law. 
‘‘(ii) REQUIREMENTS.—The data ex-
change reporting standards required by 
clause (i) shall, to the extent practicable— 
‘‘(I) incorporate a widely accept-
ed, nonproprietary, searchable, com-
puter-readable format; 
‘‘(II) be consistent with and im-
plement applicable accounting prin-
ciples; 
‘‘(III) be implemented in a man-
ner that is cost-effective and improves 
program efficiency and effectiveness; 
and 
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‘‘(IV) be capable of being contin-
ually upgraded as necessary. 
‘‘(iii) INCORPORATION OF NONPROPRI-
ETARY STANDARDS.—In designating data 
exchange standards under this subpara-
graph, the Secretary shall, to the extent 
practicable, incorporate existing nonpropri-
etary standards. 
‘‘(iv) RULE
OF
INTERPRETATION.— 
Nothing in this subparagraph shall be con-
strued to require a change to existing data 
exchange standards for Federal reporting 
under this section if the Secretary finds 
the standards to be effective and efficient. 
‘‘(4) STATE
REQUIREMENTS.—A State meets 
the requirements of this paragraph with respect to 
a quarter if— 
‘‘(A) during the quarter, the State has 
maintained an up-to-date, publicly available 
compilation of child care providers who are reg-
istered, licensed, or regulated by the State (in 
this section referred to as the ‘State Child Care 
Information Network’), that includes, with re-
spect to each such provider— 
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‘‘(i) where the provider is located, and 
a description of any fees imposed by the 
provider and the services offered by the 
provider; 
‘‘(ii) whether the provider is providing 
child care services that may be funded 
under section 418; 
‘‘(iii) the hours of operation of the 
provider; 
‘‘(iv) whether the provider offers child 
care to the general public, and if so, where 
an application for child care services from 
the provider may be obtained, or a direct 
link to such an application; 
‘‘(v) the total number of children, by 
age group, for whom the provider is pro-
viding child care services, and how many 
openings are available with the provider by 
age group; 
‘‘(vi) whether the provider has a wait-
ing list for child care services, and if so, 
the average length of time parents are on 
the waiting list before being offered child 
care services and how to join the list; 
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‘‘(vii) the type of child care (such as 
family child care or center-based care) pro-
vided, differentiating between licensed and 
license-exempt child care providers; and 
‘‘(viii) information about the lan-
guages spoken by staff of the child care 
provider, and such other information as 
the Secretary may require to help parents 
determine whether the provider can meet 
their child care needs and the parents can 
enroll a child in care, such as quality indi-
cators or accreditation status; 
‘‘(B) the State Child Care Information 
Network— 
‘‘(i) by grant or contract, has been 
maintained or jointly maintained by— 
‘‘(I) a child care resource and re-
ferral agency that has operated in the 
last fiscal year; 
‘‘(II) a local child care resource 
and referral agency that has operated 
in the most recently completed fiscal 
year and has applied to become a 
State Child Information Network; or 
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‘‘(III) the lead agency, the State 
licensing entity, or other appropriate 
entities; 
‘‘(ii) may have been maintained in co-
ordination with, or jointly with, other fed-
erally funded systems, so long as there is 
no supplantation of funding; and 
‘‘(iii) has been made— 
‘‘(I) publicly available, including 
through the Internet and by tele-
phone, to families seeking information 
about obtaining child care services; 
and 
‘‘(II) accessible to State, county, 
and other government staff involved 
in the provision of child care; 
‘‘(C) the State requires each provider listed 
in the State Child Care Information Network 
(or, at the option of the provider, another entity 
designated by the provider) to update the infor-
mation described in clauses (v) and (vi) of sub-
paragraph (A) on a weekly basis, and to update 
all other information described in subparagraph 
(A) not less frequently than quarterly, and en-
sures that publicly available information in the 
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formation on child care providers who were so 
qualified for a prior calendar quarter, including 
a quarter in a prior year, (in this section re-
ferred to as the ‘HHS Participating Child Care 
Provider Certification’) based on the informa-
tion submitted by lead agencies; 
‘‘(B) update the list of providers who are 
so qualified, 1 month before the end of each 
quarter, and electronically share with the Inter-
nal Revenue Service current and historical in-
formation on the providers who are so qualified; 
and 
‘‘(C) at the end of each calendar year and 
on request of any provider listed in the HHS 
Participating Child Care Provider Certification 
who has qualified for the certification for an en-
tire calendar quarter, provide the provider and 
the lead agency of the jurisdiction in which the 
provider is located written documentation of the 
quarters with respect to which the provider was 
so qualified. 
‘‘(2) QUALIFICATIONS.—A child care provider is 
qualified to receive the HHS Participating Child 
Care Provider Certification for a calendar quarter if 
the provider— 
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