A bill to amend the Internal Revenue Code of 1986 to provide a credit for increasing wages paid to child care providers.
Congress proposes tax credit for employers who increase child care worker wages
Stalled
No legislative action in over 90 days.
Legislative Progress
Key Points
- Congress would create a new business tax credit for employers that pay wages to child care workers at eligible child care facilities.
- The credit would generally be 5% of qualified child care wages, and 7% for wages tied to eligible facilities located in rural areas.
- To count, the worker must provide child care services at a facility that serves at least 6 individuals, charges a fee or receives funding, and follows state and local rules.
- Employers could use this credit as part of the general business credit, and some may be able to choose direct payment instead of only reducing taxes owed.
- The bill aims to make it easier for child care facilities to pay higher wages, which could help with staffing and child care availability for families.
Impact Analysis
Personal Impact
How this policy affects specific groups of people
Milestones
Read twice and referred to the Committee on Finance.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
Related News
3 articles
Child Care Supply Tax Credit Act of 2025 Introduced by Senators Justice and Warner
Covers introduction of S.3534 and explains the 5% wage-based credit (7% in rural areas) aimed at helping providers raise pay and expand capacity.
Warner, Justice team in bipartisan effort to make child care more affordable
Reports on the new tax credit proposal tied to child care worker wages; includes details on the intended workforce and supply impacts.
Child Care Supply Tax Credit Act of 2025 Introduced by Senators Justice and Warner
AMP version of WVVA story detailing S.3534’s wage credit structure and eligibility notes for providers, including rural enhancement.
Source Information
Document Type
Congressional Bill
Official Title
A bill to amend the Internal Revenue Code of 1986 to provide a credit for increasing wages paid to child care providers.
Data Sources
Sponsor
Cosponsors
(1)Analysis generated by AI. Always verify with official sources.