Bill > HR1296

This bill creates a new tax credit to support small, home-based child care providers by offering financial assistance for startup and operational expenses. Specifically, the bill establishes a refundable tax credit of up to $5,000 for qualified family child care providers who meet certain criteria, such as being licensed by the state, primarily operating out of their own residence, and caring for at least two children (not including their own) for a significant portion of the year. The credit can be used for various startup expenses including licensing fees, child care supplies, liability insurance, fencing, playground equipment, furniture, employee salaries, technology, professional training, and necessary home renovations to meet licensing requirements. The credit can only be claimed once by a taxpayer and cannot be combined with other tax deductions for the same expenses. The tax credit will be available for seven years from the date of the bill's enactment, after which it will expire unless renewed. This legislation aims to help address child care accessibility and support small, home-based child care businesses by providing financial relief for initial setup and operational costs.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/1296/all-info