Congressman Kustoff Introduces the Child Care for American Families Act

WASHINGTON, D.C. — House Committee on Ways and Means Reps. David Kustoff (R-TN), Brad Schneider (D-IL), Claudia Tenney (R-NY), and Terri Sewell (D-AL) introduced the bipartisan, Child Care for American Families Act, today in the House of Representatives. This bill will expand childcare opportunities for working families by building upon the Employer-Provided Childcare Tax Credit. 

“In Tennessee, our economy is losing $2.6 billion annually because of insufficient access to childcare. This is a nationwide problem," said Congressman Kustoff. "That is why I introduced the Child Care for American Families Act, to incentivize businesses to construct and operate childcare centers. This legislation will make it easier for employers to hire and retain employees. I urge my colleagues to support this important bill that will help get families back to work.” 

“Finding quality affordable childcare is an unacceptable crisis in this country and we need to use all the tools we have to make childcare more accessible for all families,” said Congressman Schneider. “Incentivizing employers to provide childcare is a crucial step in that direction. Not only do we need more employers to step up to provide this benefit, but we also need them to increase the availability of openings so parents can actually use childcare in their workplaces. This bill aims to do just that.”

Background: The Employer-Provided Childcare Tax Credit (IRC Section 45F) is a federal tax program designed to encourage employers to invest in childcare services for their employees and help working parents manage the high cost of childcare and remain in the labor market. However, this program is currently underutilized by employers due to the insufficiently low credit cap.
The Child Care for American Families Act would make several changes to Section 45F to increase the utilization and effectiveness of the credit. 

  1. Increase the credit amount businesses can claim and tailors the credit towards small businesses and businesses in rural areas.
  1. Allow multiple employers to jointly apply for the credit via a consortium.
  2. Instruct the IRS to develop an outreach program to increase public awareness and educate employers about the availability of, and how to apply for, the credit.

Click here for the full text of the bill. 

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This is a companion discussion topic for the original entry at https://kustoff.house.gov/media/press-releases/congressman-kustoff-introduces-child-care-american-families-act