H.R. 3155 — Child Care for American Families Act

This section revises the employer-provided child care credit under IRC §45F, which provides employers a tax credit for qualified child care expenditures (e.g., resource and referral expenditures and child care facility costs). Specifically, it (1) increases the credit rate to 40 percent (from 25 percent), 50 percent for eligible small businesses (those with an annual average of 500 or fewer employees in either of the two preceding taxable years), and 60 percent for expenditures connected to a qualified child care facility in an eligible area (a low-income community census tract under IRC §45D(e) or rural county, defined as a county where more than 50 percent of the population resides in rural census blocks); and (2) replaces the prior annual credit limit of $150,000 with an aggregate annual credit limit of $1,200,000 and a $2,000,000 limit on qualified child care expenditures taken into account. The changes apply to taxable years beginning after enactment.

This section directs the Secretary of the Treasury to issue guidance as necessary to implement the Section 45F tax credit, including on its application to multi-employer facilities (i.e., properties shared by multiple employers such as office buildings or commercial complexes).

This section directs the Secretary of the Treasury, not later than one year after enactment, to establish a public awareness program informing taxpayers about the availability of and filing procedures for the employer-provided child care tax credit under section 45F of the Internal Revenue Code of 1986. The Secretary must use appropriate means of communication to ensure awareness among all eligible taxpayers.

This section directs the Government Accountability Office (GAO) to submit to specified congressional committees, not later than 12 months after enactment, a report examining (1) state and local licensure and regulatory requirements for child care facilities; (2) compliance costs and operational barriers for child care providers, particularly multi-state operators; and (3) opportunities to reduce regulatory burdens while maintaining safety and quality standards, including to enhance employer participation in the employer-provided child care credit (IRC §45F). The report must include recommendations for (1) updating, expanding, or strengthening child care regulations; (2) enhancing uniformity across state frameworks to increase employer-provided high-quality child care; and (3) reducing barriers to the §45F credit for multi-employer facilities and multi-state operators. Applicable committees are the Senate Committees on Finance and Health, Education, Labor, and Pensions and the House Committees on Ways and Means and Education and the Workforce.