Marsha Blackburn

10/18/2024 | Press release | Distributed by Public on 10/18/2024 20:49

Blackburn, Bennet Introduce Bipartisan Bill to Expand Employer Child Care Tax Credit

Blackburn, Bennet Introduce Bipartisan Bill to Expand Employer Child Care Tax Credit

October 18, 2024

NASHVILLE, Tenn. - U.S. Senators Marsha Blackburn (R-Tenn.) and Michael Bennet (D-Colo.), members of the Senate Committee on Finance, introduced the bipartisan Child Care for American Families Act to strengthen the employer-provided child care credit and expand support for small and rural businesses:

"Many families across Tennessee and America are struggling to find reliable and affordable child care, and we need to incentivize businesses to invest in child-care services for their employees," said Senator Blackburn. "Our Child Care for American Families Act would help alleviate the financial burden of child-care costs by expanding and modernizing the Employer-Provided Child Care Tax Credit."

"Child care costs are rising nationwide, and countless families lack access to affordable, high-quality child care. This makes things that much harder for working parents, strains families' budgets, and adds undue stress for families with young children," said Senator Bennet. "The Child Care for American Families Act will help increase our country's child care supply and reduce the number of Americans in child care deserts."

BACKGROUND

  • According to the Tennessee Department of Human Services, 48 percent of Tennessee residents live in a child care desert, with disproportionate impacts felt by rural and low-income communities.

  • The Bipartisan Policy Centerfound that 31.7 percent of children below the age of six with working parents do not have access to child care, and in rural communities, that number arises to 35.1 percent.

THE CHILD CARE FOR AMERICAN FAMILIES ACT:
  • Expands the employer-provided child care credit to cover a greater percentage of child care expenses, equal to:

    • 60% for businesses in eligible rural and low-income areas, up to a maximum of $1.2 million annually;

    • 50% for small businesses, up to a maximum of $1 million annually; and

    • 40% for all other businesses, up to a maximum of $800,000 annually.
  • Directs the U.S. Department of the Treasury to issue guidance on multi-employer facilities.

ENDORSEMENTS

  • The Child Care for American Families Act is endorsed by Save the Children, Colorado Executives Partnering to Invest in Children (EPIC), Kindercare, and Early Care & Education Consortium (ECEC).

Click herefor bill text.

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