A bill to amend the Internal Revenue Code of 1986 to provide a credit for increasing wages paid to child care providers.
Sponsored By: Senator Mark Warner
Introduced
Summary
Child Care Supply Credit would create a new tax credit that lets eligible employers claim a share of wages paid to qualified child care workers. The credit is 5 percent of qualified child care wages and 7 percent for wages at eligible rural child care facilities.
Show full summary
- Eligible employers could claim a credit equal to 5% of qualified child care wages, or 7% for wages at eligible rural facilities as defined under 23 U.S.C. 101(a)(35). Employers may elect not to claim the credit for a taxable year.
- An eligible child care facility must provide care for at least 6 individuals, receive fees, payments, or grants for services, and comply with applicable state or local laws.
- A qualified child care worker is an employee who provides child care services such as care, education, protection, supervision, or guidance; their wages count as qualified child care wages under the tax code's wage definition but without the usual wage cap.
- The credit would be treated as part of the general business credit and added as an elective payment option under the tax code. The bill also amends tax rules to prevent counting the same wages for multiple credits.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
Tax credit for child care employers
This bill would create a refundable tax credit for employers that run eligible child care facilities. The credit would equal 5% of qualified child care wages you pay in a year, or 7% if the facility is in a rural area. An eligible facility must serve at least six individuals, receive fees or grants, and follow state or local rules. Qualified wages are wages as defined in federal law (section 3306(b)) without the usual dollar cap, and wages counted for other credits could not be double-counted. Employers could elect not to claim the credit for a taxable year. The credit would apply to taxable years beginning after the date of enactment.
Sponsors & CoSponsors
Sponsor
Mark Warner
VA • D
Cosponsors
James Justice
WV • R
Sponsored 12/17/2025
Roll Call Votes
No roll call votes available for this bill.
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