Congressman Kustoff Introduces Bill to Expand Childcare Options for Families

WASHINGTON, D.C. - Today, House Committee on Ways and Means Reps. David Kustoff (R-TN) and Claudia Tenney (R-NY) introduced the Child Care for American Families Act in the House of Representatives. This bill will expand childcare opportunities for working families by building upon the Employer-Provided Childcare Tax Credit.

"Insufficient access to childcare is a problem that affects families and businesses nationwide," said Congressman Kustoff. "That is why I introduced the Child Care for American Families Act, to incentivize businesses to construct and operate childcare centers. This legislation will make it easier for employers to hire and retain employees. I urge my colleagues to support this important bill that will help get families back to work."

Background:
The Employer-Provided Childcare Tax Credit (IRC Section 45F) is a federal tax program designed to encourage employers to invest in childcare services for their employees and help working parents manage the high cost of childcare and remain in the labor market. However, this program is currently underutilized by employers due to the insufficiently low credit cap.

The Child Care for American Families Act would make several changes to Section 45F to increase the utilization and effectiveness of the credit.

1. Increase the credit amount businesses can claim and tailors the credit towards small businesses and businesses in rural areas.
2. Allow multiple employers to jointly apply for the credit via a consortium.
3. Instruct the IRS to develop an outreach program to increase public awareness and educate employers about the availability of, and how to apply for, the credit.

Click here for the full text of the bill.

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