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

Q: What does Preamble of To amend the Internal Revenue Code of 1986 to provide a credit for increasing wages paid to child care providers. do?

This bill proposes to amend the Internal Revenue Code of 1986. The proposed amendment would establish a tax credit. The tax credit is specifically for increasing wages paid to child care providers.

Q: What does CHILD CARE SUPPLY CREDIT. of To amend the Internal Revenue Code of 1986 to provide a credit for increasing wages paid to child care providers. do?

This section amends the Internal Revenue Code of 1986 to create a new child care supply credit. The credit is available to employers who increase their average hourly child care wage paid to qualified child care workers. The amount of the credit is the lesser of a percentage of qualified child care wages or the excess of wages over the previous year's wages. The applicable percentage is generally 5 percent, but 7 percent for qualified child care wages paid at eligible facilities in rural areas. To qualify, a facility must provide care for at least six individuals, receive payment for services, and comply with applicable laws and regulations. Taxpayers can elect to have this section not apply. The child care supply credit is treated as part of the general business credit and is eligible for elective payment. The amendments apply to taxable years beginning after the date of enactment of this Act.

Last updated: 3/19/2026 · Introduced: 3/19/2026

Author: Linda Sánchez (D-CA)

TL;DR (AI)

This bill establishes a new tax credit for employers who increase wages paid to qualified child care workers.
The credit amount is based on the percentage of increased wages, with a higher percentage available for facilities in rural areas.
To qualify, child care facilities must provide care for at least six individuals, receive payment for services, and comply with applicable laws and regulations.

119th Congressin committeeS. 3534(In Committee)Official page

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Includes provisions on preamble, child care supply credit..

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