Jobs and Childcare for Military Families Act of 2021
Bill: S.1532 | Sponsor: Sen. Kaine, Tim (D-VA)
Policy area: Taxation

Summary:
Jobs and Childcare for Military Families Act of 2021
This bill allows an employer a work opportunity tax credit for hiring an individual who is certified by a designated local agency as being, as of the hiring date, the spouse or domestic partner of a member of the Armed Forces, and requires the creation of programs for uniformed services families to pay for childcare on a pretax basis.
Specifically, an employer may receive a tax credit equal to 40% of a new employee's first-year wages if the employer hires a service member's spouse or domestic partner (as recognized under state law or by the Armed Forces). Currently, a similar tax credit exists for employers who hire certain disadvantaged individuals, including disadvantaged veterans.
The bill requires the Department of Defense, the Department of Homeland Security (with respect to the Coast Guard), the Department of Commerce (with respect to officers of the National Oceanic and Atmospheric Administration), and the Department of Health and Human Services (with respect to the Public Health Service) to implement flexible spending arrangements that permit members of the uniformed services to use basic pay and compensation to pay for childcare services for their dependent children on a pretax basis.

To provide a work opportunity tax credit for military spouses and to 
 provide for flexible spending arrangements for childcare services for 
                      uniformed services families.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Jobs and Childcare for Military 
Families Act of 2021''.

SEC. 2. WORK OPPORTUNITY TAX CREDIT FOR MILITARY SPOUSES.

    (a) In General.--Section 51(d)(1) of the Internal Revenue Code of 
1986 is amended--
            (1) by striking ``or'' at the end of subparagraph (I),
            (2) by striking the period at the end of subparagraph (J) 
        and inserting ``, or'', and
            (3) by adding at the end the following new subparagraph:
                    ``(K) a qualified military spouse.''.
    (b) Qualified Military Spouse.--Section 51(d) of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(16) Qualified military spouse.--The term `qualified 
        military spouse' means an individual who is certified by the 
        designated local agency as being, as of the hiring date, the 
        spouse or domestic partner (as recognized under State law or by 
        the Armed Forces) of a member of the Armed Forces.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to individuals who begin work for the employer after the date of 
enactment of this Act.

SEC. 3. FLEXIBLE SPENDING ARRANGEMENTS FOR CHILDCARE SERVICES FOR 
              UNIFORMED SERVICES FAMILIES.

    (a) FSAs Required.--Not later than 12 months after the date of 
enactment of this Act, the Secretary concerned shall establish 
procedures to implement flexible spending arrangements with respect to 
basic pay and compensation for members of the uniformed services (as 
defined in section 101 of title 37, United States Code) for childcare 
services for dependent children of such members on a pre-tax basis in 
accordance with sections 125 and 129 of the Internal Revenue Code of 
1986.
    (b) Considerations.--The procedures required by subsection (a) 
shall take into account the considerations specified in section 663(b) 
of the National Defense Authorization Act for Fiscal Year 2010 (Public 
Law 111-84; 123 Stat. 2371) and such other considerations as the 
Secretaries concerned consider appropriate.
    (c) Secretary Concerned Defined.--In this section, the term 
``Secretary concerned'' means the following:
            (1) The Secretary of Defense, with respect to members of 
        the Army, the Navy, the Marine Corps, and the Air Force.
            (2) The Secretary of Homeland Security, with respect to 
        members of the Coast Guard.
            (3) The Secretary of Commerce, with respect to officers of 
        the commissioned officer corps of the National Oceanic and 
        Atmospheric Administration.
            (4) The Secretary of Health and Human Services, with 
        respect to members of the Public Health Service.
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