Small Business Dependent Care FSA Opportunity Act

Key Points

• This bill gives small businesses a tax break to help them offer childcare savings accounts to their workers. These accounts let employees set aside money from their paychecks before taxes to pay for daycare or help with elderly relatives.
• Business owners could receive a tax credit of up to $5,000 each year for the first three years after starting the program. This money helps pay for the administrative costs and the time spent teaching staff how to use the benefit.
• The plan is designed for companies with 100 or fewer employees. It aims to help smaller shops compete with big companies that already offer these types of benefits to attract and keep good workers.
• To get the credit, the business must have at least one employee who is not a high-earning executive signed up for the plan. The company also cannot have offered a similar childcare benefit in the past three years.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.