[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 5254 Introduced in Senate (IS)]
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118th CONGRESS
2d Session
S. 5254
To amend the Internal Revenue Code of 1986 to enhance the employer-
provided child care credit.
_______________________________________________________________________
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.
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 for American Families
Act''.
SEC. 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.
SEC. 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.''.
SEC. 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.
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