H.R. 3155

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3155 Introduced in House (IH)]

<DOC>

119th CONGRESS
1st Session
H. R. 3155

To amend the Internal Revenue Code of 1986 to enhance the employer-
provided child care credit.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

May 1, 2025

Mr. Kustoff (for himself and Ms. Tenney) 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 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 an eligible area, 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 area.--
``(i) In general.--For purposes of 
subparagraph (A), the term `eligible area' 
means--
``(I) a census tract described in 
section 45D(e), or
``(II) a rural county.
``(ii) Rural county.--
``(I) In general.--For purposes of 
this subparagraph, the term `rural 
county' means a county in which greater 
than 50 percent of the population of 
such county resides in census blocks 
that are designated as rural blocks (as 
determined by the Bureau of the Census 
according to the most recent decennial 
census).
``(II) Designation where no 
county.--For purposes of subclause (I), 
a rule similar to the rule of section 
143(k)(2)(D) shall apply.''.
(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.

SEC. 5. GAO STUDY ON REGULATORY BARRIERS AFFECTING EMPLOYER-PROVIDED 
CHILD CARE.

(a) In General.--Not later than 12 months after the date of 
enactment of this Act, the Comptroller General of the United States 
shall submit to the applicable Congressional committees a report 
examining--
(1) State and local licensure and regulatory requirements 
affecting child care facilities;
(2) compliance costs and operational barriers for child 
care providers, particularly with respect to providers 
operating in multiple States; and
(3) opportunities to reduce regulatory burdens while 
maintaining safety and quality standards, including how such 
improvements could enhance employer participation under section 
45F of the Internal Revenue Code of 1986.
(b) Recommendations.--The report described in subsection (a) shall 
include recommendations for--
(1) updating, expanding, or otherwise strengthening 
regulations affecting child care facilities;
(2) enhancing uniformity across State regulatory frameworks 
to facilitate greater employer participation in providing high-
quality child care;
(3) reducing barriers for multi-employer facilities seeking 
to make use of the credit provided under section 45F of the 
Internal Revenue Code of 1986; and
(4) reducing barriers for multi-state operators seeking to 
qualify for the credit provided under section 45F of the 
Internal Revenue Code of 1986.
(c) Applicable Congressional Committees.--For purposes of this 
section, the term ``applicable Congressional committees'' means--
(1) the Committees on Finance and Health, Education, Labor, 
and Pensions of the Senate; and
(2) the Committees on Ways and Means and Education and the 
Workforce of the House of Representatives.
<all>