Bill > S3534

This bill establishes a new tax credit, the "Child Care Supply Credit," for employers who increase wages paid to their child care workers. The credit is calculated as a percentage of "qualified child care wages," which are wages paid to employees working at an "eligible child care facility" who provide "child care services" – meaning care, education, protection, supervision, or guidance to children. The standard credit percentage is 5%, but it increases to 7% for wages paid to workers at eligible facilities located in rural areas, defined as any area not considered urban. Employers can elect to not claim this credit for any given tax year, and the credit is treated as part of the general business credit, meaning it can be used to offset certain tax liabilities. The bill also includes provisions for elective payments of the credit and prevents a double benefit by disallowing deductions for wages for which the credit is claimed. This new credit is intended to incentivize higher pay for child care providers, a sector that often faces wage challenges, and applies to tax years beginning after the bill's enactment.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/3534/all-info