[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4354 Introduced in House (IH)]
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117th CONGRESS
1st Session
H. R. 4354
To amend the Internal Revenue Code of 1986 to improve the employer-
provided child care tax credit.
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IN THE HOUSE OF REPRESENTATIVES
July 2, 2021
Mr. Wenstrup (for himself and Mrs. Steel) 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 improve the employer-
provided child care tax credit.
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 ``Child Care Flexibility for Working
Families Act''.
SEC. 2. IMPROVEMENTS TO THE EMPLOYER-PROVIDED CHILD CARE TAX CREDIT.
(a) Credit Allowed for Reimbursement of Employee Child Care
Expenses.--Section 45F(c)(1)(A) of the Internal Revenue Code of 1986 is
amended by striking ``or'' at the end of clause (ii), by striking the
period at the end of clause (iii) and inserting ``, or'', and by adding
at the end the following new clause:
``(iv) to reimburse an employee for child
care costs necessary for the employee's
employment.''.
(b) Credit Not Restricted to Child Care Facilities Providing
Employer-Provided Child Care.--
(1) In general.--Section 45F(c)(2)(B) of such Code is
amended in clause (i) by inserting ``and'' after the comma, by
striking clause (ii), and by redesignating clause (iii) as
clause (ii).
(2) Conforming amendments.--
(A) The heading for section 45F of such Code is
amended to read as follows:
``SEC. 45F CHILD CARE BUSINESS CREDIT.''.
(B) The table of sections for subpart D of part IV
of subchapter A of chapter 1 of subtitle A of such Code
is amended by striking the item relating to section 45F
and inserting the following new item:
``45F. Child care business credit.''.
(c) Credit Percentage for Small Employers.--Section 45F(e) of such
Code is amended by adding at the end the following new paragraph:
``(4) Credit percentage for small employers.--
``(A) In general.--With respect to a small
employer, subsection (a)(1) shall be applied by
substituting `50 percent' for `25 percent'.
``(B) Small employer.--For the purposes of this
paragraph, the term `small employer' means, with
respect to any taxable year, any employer if--
``(i) the average number of employees of
such employer on business days during such
taxable year does not exceed 50, and
``(ii) the gross receipts of such employer
during such taxable year do not exceed
$25,000,000.''.
(d) Study of Impact of Tax Credit for Employer-Provided Child
Care.--
(1) In general.--Not later than 18 months after the date of
the enactment of this Act, the Comptroller General of the
United States, in consultation with the Secretary of the
Treasury and the Secretary of Labor, shall--
(A) complete a study that examines the tax credit
for employer-provided child care authorized under
section 45F of the Internal Revenue Code of 1986 by
considering such metrics as--
(i) the characteristics of employers that
take the credit, including the size of such
employer, whether such employer is in a rural
or urban location, and whether such employer
also offers a dependent care assistance program
described in section 129 of such Code,
(ii) the characteristics of employers that
do not take the credit,
(iii) the extent to which employees benefit
when employers provide child care and take the
credit,
(iv) any challenges identified by employers
that do not take the credit, and
(v) any explanations from employers as to
why they do or do not take the credit, and
(B) prepare and submit a report to the Committee on
Finance of the Senate and the Committee on Ways and
Means of the House of Representatives setting forth the
conclusions of the study conducted under subparagraph
(A) in such a manner that the recommendations included
in the report can inform future legislative action.
Such report shall also be made publicly available on
the website of the Government Accountability Office.
(2) Prohibition.--In carrying out the requirements of this
section, the Comptroller General of the United States may
request qualitative and quantitative information from employers
claiming the credit under section 45F of the Internal Revenue
Code of 1986, but nothing in this section shall be construed as
mandating additional reporting requirements for such employers
beyond what is already required by law.
(e) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of enactment of this
Act.
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