Bill · S. 3534· Senate(119-S-3534)
A bill to amend the Internal Revenue Code of 1986 to provide a credit for increasing wages paid to child care providers.
- Introduced
- 12/17/2025
- Last activity
- 12/17/2025 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Mark Warner
- Cosponsors
- - 0 - 1
- Introduced
- In Committee
What this bill would do
This bill amends the Internal Revenue Code of 1986 to create a new tax credit for employers who increase the wages they pay to child care providers. The credit is generally set at 5 percent of the qualified child care wages paid by the employer. For eligible child care facilities located in rural areas, the applicable percentage is increased to 7 percent. Qualified child care workers are employees who work at an eligible facility and provide care, education, protection, supervision, or guidance to children. An eligible child care facility must serve at least 6 individuals, receive payment or grants for its services, and comply with all applicable State and local laws. Taxpayers can also choose to elect out of this credit if they prefer.
Yes· 3 of 17
Would people in rural areas be better off under this?+4
Provides a higher credit percentage (7 percent) specifically for rural child care facilities to support underserved areas.
Does this make it easier to run a small business?+4
Offers tax incentives directly to child care facility employers to help offset wage increases.
Would children be better off under this?+3
Supports the child care infrastructure which benefits children in early care and education settings.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
-
Tax Credit for Child Care Providers' Wages: Under Section 1 (adding Section 45BB(a)), employers can receive a tax credit based on a percentage of the qualified wages they pay to child care workers. This could encourage employers to boost pay for these workers.
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Higher Credit for Rural Areas: Under Section 1 (adding Section 45BB(b)(2)), the tax credit percentage increases to 7 percent for qualified wages paid at an eligible child care facility located in a rural area. This provides an extra incentive to support child care workers outside of urban locations.
Potential Negative Impacts for People
- The provided text does not contain any specific provisions outlining potential negative consequences, burdens, or explicit downsides for individuals or groups of people in the United States.
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 Rural Residents+4Good For Business Owners+3Good For Children+3Good For Low Income Households+3Good For Women+3Good For Young Adults+2Good For Middle Aged+1Good For Middle Class Households+1Good For Urban Residents+1
- Economy And Finance
- Improves Small Business Support+4Reduces Small Business Taxes+3Improves Economic Growth+2Increases Job Creation+2
- Social Issues And Justice
- Improves Childcare Affordability+3Improves Gender Equality+2Improves Poverty Reduction+1
- Environment Energy And Infrastructure
- Improves Rural Development+3
- 12/17/2025
- Read twice and referred to the Committee on Finance.
- 1 Cosponsor added.
- Introduced in Senate
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
James JusticeRepublican · West Virginia