A bill to amend the Internal Revenue Code of 1986 to provide a credit for increasing wages paid to child care providers.

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.