“A bill 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 5% (7% in rural areas, i.e., non-urban areas per 23 U.S.C. §101(a)(35)) of qualified child care wages paid to qualified child care workers (i.e., employees providing care, education, protection, supervision, or guidance to children at eligible child care facilities serving at least six children, receiving fees/payments/grants, and complying with state/local laws). Wages are defined per IRC §3306(b) without dollar limits and excluding amounts used for other credits under subpart D; employers may elect out of the credit, which is also eligible for direct payment under IRC §6417 and subject to denial of double benefit under IRC §280C(a) (i.e., no wage deduction). The credit applies to taxable years beginning after enactment.