H.R. 8023

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8023 Introduced in House (IH)]

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119th CONGRESS
2d Session
H. R. 8023

To amend the Internal Revenue Code of 1986 to provide a credit for 
increasing wages paid to child care providers.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

March 19, 2026

Ms. Sanchez (for herself and Mrs. Miller of West Virginia) 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 provide a credit for 
increasing wages paid to child care providers.

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

SECTION 1. CHILD CARE SUPPLY CREDIT.

(a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 45BB. CHILD CARE SUPPLY CREDIT.

``(a) In General.--For purposes of section 38, the amount of the 
child care supply credit determined under this section with respect to 
any employer for any taxable year is an amount equal to the lesser of--
``(1) the applicable percentage of the qualified child care 
wages paid or incurred by the employer for such taxable year, 
or
``(2) the excess (if any) of--
``(A) the qualified child care wages paid or 
incurred by the employer for such taxable year, over
``(B) the qualified child care wages paid or 
incurred by the employer for the preceding taxable 
year.
``(b) Requirement of Increase in Annual Average Hourly Child Care 
Wage.--
``(1) In general.--No credit shall be determined under 
subsection (a) with respect to any employer for any taxable 
year unless such employer's average hourly child care wage for 
such taxable year exceeds such employer's average hourly child 
care wage for the preceding taxable year.
``(2) Average hourly child care wage.--For purposes of this 
subsection, the term `average hourly child care wage' means, 
with respect to any employer for any taxable year, the ratio 
of--
``(A) the qualified child care wages paid or 
incurred by such employer for such taxable year, 
divided by
``(B) the total number of hours of service for 
which such wages were paid or incurred.
``(c) Applicable Percentage.--For purposes of this section--
``(1) In general.--Except as provided in paragraph (2), the 
applicable percentage is 5 percent.
``(2) Rural areas.--
``(A) In general.--In the case of qualified child 
care wages paid or incurred with respect to employment 
at an eligible childcare facility which is located in a 
rural area, the applicable percentage is 7 percent.
``(B) Rural area defined.--For purposes of this 
paragraph, the term `rural area' means any area other 
than an urban area (as defined in section 101(a)(35) of 
title 23, United States Code).
``(d) Definitions.--For purposes of this section--
``(1) Qualified child care wages.--
``(A) In general.--The term `qualified child care 
wages' means wages paid to qualified child care 
workers.
``(B) Wages.--The term `wages' has the meaning 
given such term by subsection (b) of section 3306 
(determined without regard to any dollar limitation 
contained in such section). Such term shall not include 
any amount taken into account for purposes of 
determining any other credit allowed under this 
subpart.
``(2) Qualified child care worker.--
``(A) In general.--The term `qualified child care 
worker' means any employee who--
``(i) is employed at an eligible child care 
facility, and
``(ii) provides child care services.
``(3) Eligible child care facility.--The term `eligible 
child care facility' means any facility which--
``(A) provides child care services for at least 6 
individuals,
``(B) receives a fee, payment, or grant for 
providing such services, and
``(C) complies with all applicable laws and 
regulations of a State or unit of local government.
``(4) Child care services.--The term `child care services' 
means the providing of care, education, protection, 
supervision, or guidance to children.
``(e) Election to Have Credit Not Apply.--
``(1) In general.--A taxpayer may elect to have this 
section not apply for any taxable year.
``(2) Other rules.--Rules similar to the rules of 
paragraphs (2) and (3) of section 51(j) shall apply for 
purposes of this subsection.''.
(b) Credit Treated as Part of General Business Credit.--Section 
38(b) of the Internal Revenue Code of 1986 is amended by striking 
``plus'' at the end of paragraph (40), by striking the period at the 
end of paragraph (41) and inserting ``, plus'', and by adding at the 
end the following new paragraph:
``(42) the child care supply credit determined under 
section 45BB(a).''.
(c) Elective Payment.--Section 6417(b) of the Internal Revenue Code 
of 1986 is amended by adding at the end the following new paragraph:
``(13) The child care supply credit determined under 
section 45BB(a).''.
(d) Denial of Double Benefit.--Section 280C(a) of the Internal 
Revenue Code of 1986 is amended by inserting ``45BB(a),'' after 
``45S(a),''.
(e) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new item:

``Sec. 45BB. Child care supply credit.''.
(f) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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