“To amend the Internal Revenue Code of 1986 to provide a credit for increasing wages paid to child care providers.”
No CRS summary available for this bill.
This section establishes a new general business credit (under new IRC §45BB) for employers equal to the lesser of (1) 5% (7% for wages at eligible child care facilities in rural areas, i.e., non-urban areas) of qualified child care wages paid in the taxable year or (2) such wages exceeding the prior year's amount, provided the employer's average hourly child care wage (i.e., total qualified wages divided by total hours) also exceeds the prior year's average. Qualified child care wages are wages (per IRC §3306(b), without dollar limits) paid to qualified child care workers (i.e., employees providing child care services—care, education, protection, supervision, or guidance—at eligible child care facilities, which serve at least 6 children, receive fees/payments/grants, and comply with state/local laws); such wages are ineligible for other credits in IRC subpart D and nondeductible under IRC §280C(a). The credit is eligible for elective payment (per IRC §6417), employers may elect out, and amendments apply to taxable years beginning after enactment.