ICYMI: Bipartisan Hassan, Sullivan Bill to Help More Businesses Provide Child Care to Employees Passes Committee

WASHINGTON -In case you missed it, the Senate Finance Committee recently advanced bipartisan legislation from U.S. Senators Maggie Hassan (D-NH) and Dan Sullivan (R-AK) to make it easier for businesses to access tax incentives to expand access to child care for working families. The Child Care Tax Benefit Outreach and Assistance Act would create a Business Child Care Liaison at the IRS to help more businesses take advantage of existing federal child care tax incentives that are underutilized.

In June, the U.S. Congress Joint Economic Committee - Minority issued a report that calculated that a sample business could save $820,000 over 5 years using the credits, and a parent working for the company could save nearly $10,000 on child care costs.

"Finding affordable child care is one of the biggest challenges facing working families, and it's also making it harder for businesses to hire and retain employees," said Senator Hassan. "This bipartisan bill will help more employers take advantage of existing child care tax incentives so they can better support working parents. I'm glad to see it advance through committee, and I urge my Senate colleagues to join me in passing this bipartisan bill into law. I'll keep working across the aisle to help more families access affordable child care."

"Quality child care is not only essential for the well-being of families, it is also key to a thriving economy and a strong workforce," said Sen. Sullivan. "I hear repeatedly from Alaska parents that the lack of affordable child care is one of their top concerns, and the data backs that up. Sixty-one percent of Alaskans are living in communities classified as child care 'deserts,' and too many families struggle to find reliable, affordable care close to home. This legislation will help employers, providers, and other nonprofits better utilize federal tools for employees-specifically the significant expansion of federal incentives in the Working Families Tax Cuts Act for child care facilities and the provisions that expand opportunities and support for working families. It was great to see this legislation advance through committee, and I look forward to working with my Senate colleagues on both sides of the aisle to get it across the finish line."

Federal tax incentives designed to help businesses provide child care benefits are underutilized, even as working parents across the country struggle with the cost and availability of child care. Greater utilization of these incentives by businesses could help expand access to child care for many working families - and help more businesses hire and retain workers. The bipartisan Hassan-Sullivan legislation would direct the IRS to appoint a Business Child Care Liaison who would be responsible for building relationships between the child care sector and business community, coordinating with other federal agencies to help employers use child care tax incentives, and identify and recommend to Congress potential legislative and administrative changes to improve the utilization of these incentives.

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