Us Congress 2023-2024 Regular Session

Us Congress Senate Bill SB5254

Introduced
9/25/24  

Caption

Child Care for American Families Act

Impact

If enacted, SB5254 would significantly affect state and federal tax laws related to employer-provided child care benefits. The increased tax credits could relieve some financial burden on businesses, encouraging more companies, especially small businesses, to invest in child care solutions. This is particularly crucial in states with high child care costs, as it aligns with broader goals to improve child care accessibility for working families. Additionally, the bill mandates the Secretary of the Treasury to establish a public awareness program to educate taxpayers about this credit, ensuring the benefits are widely understood and utilized.

Summary

SB5254, known as the 'Child Care for American Families Act', aims to amend the Internal Revenue Code to enhance the employer-provided child care credit. The bill proposes an increase in the percentage of qualified child care expenses that employers can claim as a tax credit. Specifically, it increases the general applicable percentage from 25 percent to 40 percent, and provides higher percentages (50% and 60%) for certain qualifying expenditures, particularly those made by small businesses and those in eligible census tracts. The amendments are designed to incentivize employers to provide child care services to their employees, fostering a supportive work environment that can enhance workforce participation, particularly among parents.

Contention

Notable points of contention surrounding SB5254 involve the scope of the proposed tax credits and their potential effectiveness. Critics may argue that while increased credits for child care are a positive step, they may not sufficiently address more systemic issues surrounding child care availability and affordability. Additionally, some stakeholders express concerns over the bill's reliance on tax credits as a means of support rather than direct subsidies for child care services, fearing it might not benefit the most vulnerable families who may not be employed by firms capable of offering these enhanced credits.

Companion Bills

US HB8540

Related Child Care for American Families Act

Previously Filed As

US HB3155

Child Care for American Families Act

US HB8540

Child Care for American Families Act

US HB2473

Healthy Food Access for All Americans Act

US HB10009

Revitalizing America’s Housing Act

US HB7762

Healthy Food Access for All Americans Act

US SB5017

Safeguarding American Families and Expanding Social Security Act of 2024

US HB7024

Tax Relief for American Families and Workers Act of 2024

US SB1526

Retirement Savings for Americans Act of 2025

US HB9873

American Stability Act

US HB10025

American Homeownership Opportunity Act of 2024

Similar Bills

No similar bills found.