Child Care for American Families Act

Bill: 118-s-5254
Sponsor: full_name: Sen. Bennet, Michael F. [D-CO]
Introduced: 2024-09-25
Policy area: Taxation
Latest action: action_date: 2024-09-25
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2024-09-25
action_desc: Introduced in Senate
text: <p><strong>Child Care for American Families Act&nbsp;</strong></p><p>This bill increases and revises the employer-provided child care tax credit. It increases the rate of such credit from 25% to 40% (50% for certain small businesses and 60% for child care facilities located in an eligible census track).</p><p>The bill increases the limitation on the dollar amount of the credit to $1.2 million in any taxable year and imposes a $2 million limit on the aggregate amount of child care expenditures that may be taken into account for purposes of calculating the credit.&nbsp;</p><p>The bill directs the Internal Revenue Service to issue guidance regarding multi-employer facilities and to establish a public awareness program to inform taxpayers about the availability of the child care credit and filing procedures for such credit.&nbsp;</p>

tv_txt: II 118th CONGRESS 2d Session S. 5254 IN THE SENATE OF THE UNITED STATES September 25, 2024 Mr. Bennet (for himself and Mrs. Blackburn ) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to enhance the employer-provided child care credit.

1. Short title This Act may be cited as the Child Care for American Families Act . 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 percent and inserting the applicable percentage . (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 paragraph (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 business, 50 percent, and (iii) in the case of any qualified child care expenditures paid or incurred in connection with a qualified child care facility located in a eligible census tract, 60 percent. (B) Eligible small business For purposes of subparagraph (A), the term eligible small business means, with respect to any taxable 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 preceding sentence, a preceding taxable year may be taken into account only if the taxpayer 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 Secretary of Commerce. . (c) Dollar limitation Section 45F(b) of such Code is amended to read as follows: (b) Dollar limitation (1) Aggregate limitation The credit allowable 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. 3. Guidance regarding multi-employer facilities Section 45F of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (g) Guidance The Secretary shall issue such guidance as may be necessary to carry out the purposes of this section, including guidance on the application of this section to multi-employer facilities. . 4. Dissemination of information (a) In general Not later than 1 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 taxpayers about— (1) the availability of the credit for employer-provided child care under section 45F of the Internal Revenue Code of 1986, and (2) filing procedures for such credit. (b) Method In carrying out this section, the Secretary of the Treasury (or the Secretary's delegate) shall use appropriate means of communication to ensure awareness by all taxpayers who are eligible for the credit allowed under section 45F of the Internal Revenue Code of 1986.