I 
119TH CONGRESS 
1ST SESSION H. R. 3155 
To amend the Internal Revenue Code of 1986 to enhance the employer- 
provided child care credit. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 1, 2025 
Mr. KUSTOFF (for himself and Ms. TENNEY) 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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Child Care for Amer-
ican 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 per-
cent’’ and inserting ‘‘the applicable percentage’’. 
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(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 para-
graph (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 busi-
ness, 50 percent, and 
‘‘(iii) in the case of any qualified child 
care expenditures paid or incurred in con-
nection with a qualified child care facility 
located in an eligible area, 60 percent. 
‘‘(B) ELIGIBLE
SMALL
BUSINESS.—For 
purposes of subparagraph (A), the term ‘eligible 
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small business’ means, with respect to any tax-
able 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 pre-
ceding sentence, a preceding taxable year may 
be taken into account only if the taxpayer was 
in existence throughout the year. 
‘‘(C) ELIGIBLE AREA.— 
‘‘(i) IN
GENERAL.—For purposes of 
subparagraph (A), the term ‘eligible area’ 
means— 
‘‘(I) a census tract described in 
section 45D(e), or 
‘‘(II) a rural county. 
‘‘(ii) RURAL COUNTY.— 
‘‘(I) IN GENERAL.—For purposes 
of this subparagraph, the term ‘rural 
county’ means a county in which 
greater than 50 percent of the popu-
lation of such county resides in census 
blocks that are designated as rural 
blocks (as determined by the Bureau 
of the Census according to the most 
recent decennial census). 
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‘‘(II) DESIGNATION
WHERE
NO 
COUNTY.—For purposes of subclause 
(I), a rule similar to the rule of sec-
tion 143(k)(2)(D) shall apply.’’. 
(c) DOLLAR LIMITATION.—Section 45F(b) of such 
Code is amended to read as follows: 
‘‘(b) DOLLAR LIMITATION.— 
‘‘(1) AGGREGATE LIMITATION.—The credit al-
lowable 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 FACILI-
TIES. 
Section 45F of the Internal Revenue Code of 1986 
is amended by adding at the end the following new sub-
section: 
‘‘(g) GUIDANCE.—The Secretary shall issue such 
guidance as may be necessary to carry out the purposes 
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