I 
118TH CONGRESS 
2D SESSION 
H. R. 8540 
To amend the Internal Revenue Code of 1986 to enhance the employer- 
provided 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. 
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. INCREASED 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 qualified child care 
expenditures of an eligible small business, 
50 percent, and 
‘‘(iii) in the case of any qualified child 
care expenditures paid in connection with a 
qualified child care facility located in a 
qualified census tract, 60 percent. 
‘‘(B) ELIGIBLE
SMALL
BUSINESS.—For 
purposes of subsection subparagraph (A), the 
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term ‘eligible small business’ means, with re-
spect to any taxable year, any taxpayer if the 
annual average number of employees employed 
by such person during either of the 2 preceding 
calendar years was 500 or fewer. For purposes 
of the preceding sentence, a preceding taxable 
year may be taken into account only if the tax-
payer was in existence throughout the year. 
‘‘(C) ELIGIBLE CENSUS TRACT.— 
‘‘(i) IN
GENERAL.—For purposes of 
subparagraph (A), the term ‘eligible census 
tract’ means any population census tract 
which— 
‘‘(I) 
is 
described 
in 
section 
45D(e), or 
‘‘(II) is not an urban area. 
‘‘(ii) URBAN AREA.—For purposes of 
this subparagraph, the term ‘urban area’ 
means a census tract (as defined by the 
Bureau of the Census) which, according to 
the most recent decennial census, has been 
designated as an urban area by the Sec-
retary of Commerce.’’. 
(c) DOLLAR LIMITATION.—Section 45F(b) of such 
Code is amended to read as follows: 
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‘‘(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. RULES OF APPLICATION FOR MULTI-EMPLOYER FA-
CILITIES. 
Section 45F of the Internal Revenue Code of 1986 
is amended by adding at the end the following new sub-
section: 
‘‘(g) REGULATIONS.—The Secretary shall issue such 
regulations or other guidance as may be necessary to carry 
out the purposes of this section, including guidance on the 
application of this section to multiple employers jointly ac-
quiring, constructing, or operating a qualified child care 
facility.’’. 
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SEC. 4. DISSEMINATION OF INFORMATION. 
(a) IN GENERAL.—Not later than one year after the 
date of the enactment of this Act, the Secretary of the 
Treasury (or the Secretary’s delegate) shall establish a 
public awareness program to inform the taxpayers 
about— 
(1) the availability of the credit for employer- 
provided child care under section 45F of the Inter-
nal Revenue Code of 1986, and 
(2) filing procedures for such credit. 
(b) METHOD.—In carrying out this section, the Sec-
retary of the Treasury (or the Secretary’s delegate) shall 
use appropriate means of communication to ensure aware-
ness by all taxpayers who are eligible for the credit allowed 
under section 45F of the Internal Revenue Code of 1986. 
Æ 
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