I 
116TH CONGRESS 
2D SESSION 
H. R. 7837 
To provide a payroll tax credit for certain employee dependent care expenses 
paid by employers. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 29, 2020 
Mr. LAMB (for himself, Ms. SA´NCHEZ, and Mr. FITZPATRICK) introduced the 
following bill; which was referred to the Committee on Ways and Means 
A BILL 
To provide a payroll tax credit for certain employee 
dependent care expenses paid by employers. 
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 ‘‘Supporting American 
Families, Employers, Kids and Jobs Act’’ or as the 
‘‘SAFE Kids and Jobs Act’’. 
VerDate Sep 11 2014 
00:24 Aug 20, 2020
Jkt 099200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H7837.IH
H7837
SSpencer on DSK126QN23PROD with BILLS
SEC. 2. PAYROLL CREDIT FOR CERTAIN EMPLOYEE DE-
PENDENT CARE EXPENSES PAID BY EMPLOY-
ERS. 
(a) IN GENERAL.—In the case of an employer, there 
shall be allowed as a credit against applicable employment 
taxes for each calendar quarter an amount equal to 30 
percent of the qualified employee dependent care expenses 
paid by such employer with respect to such calendar quar-
ter. 
(b) LIMITATIONS AND REFUNDABILITY.— 
(1) DOLLAR LIMITATION PER EMPLOYEE.—The 
qualified employee dependent care expenses which 
may be taken into account under subsection (a) with 
respect to any employee for any calendar quarter 
shall not exceed $2,500. 
(2) CREDIT LIMITED TO CERTAIN EMPLOYMENT 
TAXES.—The credit allowed by subsection (a) with 
respect to any calendar quarter shall not exceed the 
applicable employment taxes for such calendar quar-
ter (reduced by any credits allowed under sub-
sections (e) and (f) of section 3111 of such Code, 
sections 7001 and 7003 of the Families First 
Coronavirus Response Act, section 2301 of the 
CARES Act, and section 4 of this Act, for such 
quarter) on the wages paid with respect to the em-
VerDate Sep 11 2014 
00:24 Aug 20, 2020
Jkt 099200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H7837.IH
H7837
SSpencer on DSK126QN23PROD with BILLS
ployment of all the employees of the employer for 
such calendar quarter. 
(3) REFUNDABILITY OF EXCESS CREDIT.— 
(A) IN GENERAL.—If the amount of the 
credit under subsection (a) exceeds the limita-
tion of paragraph (2) for any calendar quarter, 
such excess shall be treated as an overpayment 
that shall be refunded under sections 6402(a) 
and 6413(b) of the Internal Revenue Code of 
1986. 
(B) TREATMENT OF PAYMENTS.—For pur-
poses of section 1324 of title 31, United States 
Code, any amounts due to an employer under 
this paragraph shall be treated in the same 
manner as a refund due from a credit provision 
referred to in subsection (b)(2) of such section. 
(4) 
COORDINATION
WITH
GOVERNMENT 
GRANTS.—The qualified employee dependent care 
expenses taken into account under this section by 
any employer shall be reduced by any amounts pro-
vided by any Federal, State, or local government for 
purposes of making or reimbursing such expenses. 
(c) QUALIFIED EMPLOYEE DEPENDENT CARE EX-
PENSES.—For purposes of this section— 
VerDate Sep 11 2014 
00:24 Aug 20, 2020
Jkt 099200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H7837.IH
H7837
SSpencer on DSK126QN23PROD with BILLS
(1) IN
GENERAL.—The term ‘‘qualified em-
ployee dependent care expenses’’ means any amount 
paid to or for the benefit of an employee in the em-
ployment of the employer if— 
(A) such amount is dependent care assist-
ance (as defined in section 129(e)(1) of the In-
ternal Revenue Code of 1986); and 
(B) the employer elects (at such time and 
in such manner as the Secretary may provide) 
to treat such amount as a qualified employee 
dependent care expense. 
(2) EXCLUSION OF AMOUNTS PAID THROUGH 
SALARY
REDUCTION
ARRANGEMENTS.—Such term 
shall not include any amount paid at the election of 
the employee under a salary reduction arrangement. 
(d) SPECIAL RULES; OTHER DEFINITIONS.— 
(1) APPLICATION OF CERTAIN NON-DISCRIMINA-
TION RULES.—No credit shall be allowed under this 
section to any employer for any calendar quarter if 
qualified employee dependent care expenses are pro-
vided by such employer to employees for such cal-
endar quarter in a manner which discriminates in 
favor of highly compensated individuals (within the 
meaning of section 125) as to eligibility for, or the 
amount of, such benefit expenses. 
VerDate Sep 11 2014 
00:24 Aug 20, 2020
Jkt 099200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H7837.IH
H7837
SSpencer on DSK126QN23PROD with BILLS
(2) DENIAL OF DOUBLE BENEFIT.—For pur-
poses of chapter 1 of such Code, no deduction or 
credit (other than the credit allowed under this sec-
tion) shall be allowed for so much of qualified em-
ployee dependent care expenses as is equal to the 
credit allowed under this section. 
(3) THIRD-PARTY PAYORS.—Any credit allowed 
under this section shall be treated as a credit de-
scribed in section 3511(d)(2) of such Code. 
(4) APPLICABLE
EMPLOYMENT
TAXES.—For 
purposes of this section, the term ‘‘applicable em-
ployment taxes’’ means the following: 
(A) The taxes imposed under section 
3111(a) of the Internal Revenue Code of 1986. 
(B) So much of the taxes imposed under 
section 3221(a) of such Code as are attrib-
utable to the rate in effect under section 
3111(a) of such Code. 
(5) SECRETARY.—For purposes of this section, 
the term ‘‘Secretary’’ means the Secretary of the 
Treasury or the Secretary’s delegate. 
(6) CERTAIN TERMS.— 
(A) IN GENERAL.—Any term used in this 
section which is also used in chapter 21 or 22 
of such Code shall have the same meaning as 
VerDate Sep 11 2014 
00:24 Aug 20, 2020
Jkt 099200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H7837.IH
H7837
SSpencer on DSK126QN23PROD with BILLS
when used in such chapter (as the case may 
be). 
(B) CERTAIN
PROVISIONS
NOT
TAKEN 
INTO ACCOUNT EXCEPT FOR PURPOSES OF LIM-
ITING CREDIT TO EMPLOYMENT TAXES.—For 
purposes of subparagraph (A) (other than with 
respect to subsection (b)(2)), section 3121(b) of 
such Code shall be applied without regard to 
paragraphs (1), (5), (6), (7), (8), (10), (13), 
(18), (19), and (22) thereof (except with re-
spect to services performed in a penal institu-
tion by an inmate thereof) and section 
3231(e)(1) shall be applied without regard to 
the sentence that begins ‘‘Such term does not 
include remuneration’’. 
(e) CERTAIN GOVERNMENTAL EMPLOYERS.— 
(1) IN GENERAL.—The credit under this section 
shall not be allowed to the Federal Government or 
any agency or instrumentality thereof. 
(2) EXCEPTION.—Paragraph (1) shall not 
apply to any organization described in section 
501(c)(1) of the Internal Revenue Code of 1986 and 
exempt from tax under section 501(a) of such Code. 
(f) TREATMENT OF DEPOSITS.—The Secretary shall 
waive any penalty under section 6656 of such Code for 
VerDate Sep 11 2014 
00:24 Aug 20, 2020
Jkt 099200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H7837.IH
H7837
SSpencer on DSK126QN23PROD with BILLS
any failure to make a deposit of applicable employment 
taxes if the Secretary determines that such failure was due 
to the anticipation of the credit allowed under this section. 
(g) REGULATIONS.—The Secretary shall prescribe 
such regulations or other guidance as may be necessary 
to carry out the purposes of this section, including regula-
tions or other guidance— 
(1) to allow the advance payment of the credit 
determined under subsection (a), subject to the limi-
tations provided in this section, based on such infor-
mation as the Secretary shall require; 
(2) to provide for the reconciliation of such ad-
vance payment with the amount of the credit at the 
time of filing the return of tax for the applicable 
quarter or taxable year; 
(3) for recapturing the benefit of credits deter-
mined under this section in cases where there is a 
subsequent adjustment to the credit determined 
under subsection (a); and 
(4) with respect to the application of the credit 
to third-party payors (including professional em-
ployer organizations, certified professional employer 
organizations, or agents under section 3504 of such 
Code), including to allow such payors to submit doc-
umentation necessary to substantiate eligibility for, 
VerDate Sep 11 2014 
00:24 Aug 20, 2020
Jkt 099200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H7837.IH
H7837
SSpencer on DSK126QN23PROD with BILLS
and the amount of, the credit allowed under this sec-
tion. 
(h) APPLICATION OF SECTION.—This section shall 
apply only to qualified employee dependent care expenses 
paid after the date of the enactment of this Act and before 
January 1, 2021. 
(i) TRANSFERS TO CERTAIN TRUST FUNDS.—There 
are hereby appropriated to the Federal Old-Age and Sur-
vivors Insurance Trust Fund and the Federal Disability 
Insurance Trust Fund established under section 201 of 
the Social Security Act (42 U.S.C. 401) and the Social 
Security Equivalent Benefit Account established under 
section 15A(a) of the Railroad Retirement Act of 1974 
(45 U.S.C. 231n–1(a)) amounts equal to the reduction in 
revenues to the Treasury by reason of this section (without 
regard to this subsection). Amounts appropriated by the 
preceding sentence shall be transferred from the general 
fund at such times and in such manner as to replicate 
to the extent possible the transfers which would have oc-
curred to such Trust Fund or Account had this section 
not been enacted. 
Æ 
VerDate Sep 11 2014 
00:24 Aug 20, 2020
Jkt 099200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6301
E:\BILLS\H7837.IH
H7837
SSpencer on DSK126QN23PROD with BILLS