Rep. Crank Introduces Bill to Support Early Childhood Education Opportunities

WASHINGTON, D.C. -- Representative Jeff Crank (CO-05) introduced the Supporting Early Childhood Education Opportunities through Upfront Tax Deductions (SPROUT) Act, to help incentivize the creation of more childcare and early childhood education centers.

Families who cannot provide care at home face a lack of available childcare, an issue that Colorado and the entire country faces. While Colorado ranks among the best states in the country for its childcare workforce, it falls short when it comes to the number of infant care and toddler care facilities available to families. For El Paso County, estimates are in the tens of thousands of children lacking access to quality childcare and early education centers.

The SPROUT Act would help reduce this deficit and increase daycare capacity by allowing the owners of new facilities to deduct their costs in the same tax year that they are incurred, as opposed to the current framework requiring them to spread the deductions over decades. This accelerated tax deduction will attract more investment in new facilities.

"Parents want the best education and care for their kids, they just need more options to fill the need that El Paso County faces," said Rep. Crank. "The SPROUT Act makes a simplified tax process and incentivizes the creation of more childcare and early childhood education centers, helping to alleviate a burden impacting families across our community."

Specifically, the SPROUT Act would:

• Allow owners of new childcare or early childhood education centers to immediately expense (deduct) all costs associated with the creation of the center in the same tax year that they incur the cost;
• Extend tax benefits to the creation of any center that is licensed by a State and provides care for children under the age of 5;
• Clarify that the owner of the center must enter into a written binding contract with an entity licensed by a State to provide care before construction or improvements begin to be eligible for the tax benefit.

Quote of support for the SPROUT Act:
"Allowing businesses to fully and immediately deduct their expenses is a proven policy for boosting growth and investment," said the Tax Foundation. "The SPROUT Act enables businesses to have a full and immediate deduction for childcare facilities and would boost investment in the sector."

Read the bill here.

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