Sec. 70401. Enhancement of employer-provided child care credit
322 words·~1 min read·
/bill/119/hr/1/eas/section-70401A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 45F(a)(1) is amended by striking 25 percent and inserting 40 percent (50 percent in the case of an eligible small business) . Subsection
(b)of section 45F is amended to read as follows: The credit allowable under subsection
(a)for any taxable year shall not exceed $500,000 ($600,000 in the case of an eligible small business). In the case of any taxable year beginning after 2026, the $500,000 and $600,000 amounts in paragraph
(1)shall each be increased by an amount equal to— such dollar amount, multiplied by the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2025 for calendar year 2016 in subparagraph (A)(ii) thereof. . Section 45F(c) is amended by adding at the end the following new paragraph: The term eligible small business means a business that meets the gross receipts test of section 448(c), determined— by substituting 5-taxable-year for 3-taxable-year in paragraph
(1)thereof, and by substituting 5-year for 3-year in paragraph (3)(A) thereof. . Section 45F(c)(1)(A)(iii) is amended by inserting , or under a contract with an intermediate entity that contracts with one or more qualified child care facilities to provide such child care services before the period at the end. Section 45F(c)(2) is amended by adding at the end the following new subparagraph: A facility shall not fail to be treated as a qualified child care facility of the taxpayer merely because such facility is jointly owned or operated by the taxpayer and other persons. . Section 45F is amended by adding at the end the following new subsection: The Secretary shall issue such regulations or other guidance as may be necessary to carry out the purposes of this section, including guidance to carry out the purposes of paragraphs (1)(A)(iii) and (2)(C) of subsection (c). . The amendments made by this section shall apply to amounts paid or incurred after December 31, 2025.