Bill · H.R. 3155· House(119-HR-3155)
Child Care for American Families Act
- Introduced
- 5/1/2025
- Last activity
- 5/1/2025 — Referred to the House Committee on Ways and Means.
- Sponsored by
- David Kustoff
- Cosponsors
- - 1 - 0
- Introduced
- In Committee
What this bill would do
The "Child Care for American Families Act" aims to amend the Internal Revenue Code of 1986 to increase the employer-provided child care credit. It replaces the current 25 percent credit with an applicable percentage that varies based on the type of business or location. Small businesses can receive a 50 percent credit, while facilities in eligible areas can receive a 60 percent credit. The bill also establishes specific dollar limitations for the aggregate credit and expenditures. Additionally, it directs the Secretary of the Treasury to create a public awareness program regarding the credit. Finally, it mandates a GAO study to examine regulatory barriers affecting child care providers.
Yes· 3 of 7
Would business owners be better off under this?+5
The bill provides significant tax relief for small business owners through increased child care credits.
Does this cut taxes for small businesses?+5
The bill increases the employer-provided child care tax credit to 50 percent for eligible small businesses.
Does this make it easier to run a small business?+5
The bill provides enhanced tax credits specifically for small businesses with 500 or fewer employees.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
-
Increased credit for small businesses: The bill increases the credit to 50 percent for eligible small businesses, defined as those with an average of 500 or fewer employees (Section 2(b)(2)).
-
Higher support for specific geographic areas: Employers can receive a 60 percent credit for qualified child care expenditures paid in connection with a facility located in an "eligible area," such as a rural county or specific census tract (Section 2(b)(2)).
-
Increased general credit percentage: The bill replaces the existing 25 percent credit with a higher "applicable percentage" of 40 percent for general cases (Section 2(a) and Section 2(b)(2)).
-
Improved information access: The Secretary of the Treasury is required to establish a public awareness program to inform taxpayers about the availability of the credit and how to file for it (Section 4(a)).
-
Identification of regulatory barriers: A GAO study will examine compliance costs, operational barriers, and opportunities to reduce regulatory burdens for child care providers (Section 5(a)).
Potential Negative Impacts for People
- Caps on credit and expenditures: There are specific dollar limitations where the aggregate credit cannot exceed $1,200,000 and total qualified child care expenditures cannot exceed $2,000,000 (Section 2(c)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Business Owners+5Good For Rural Residents+4Good For Children+3
- Economy And Finance
- Improves Small Business Support+5Reduces Small Business Taxes+5
- Social Issues And Justice
- Improves Childcare Affordability+4
- Governance And Ideology
- Improves Government Transparency+3
- 5/1/2025
- Referred to the House Committee on Ways and Means.
- 1 Cosponsor added.
- Introduced in House
Claudia TenneyRepublican · New York