The U.S. House of Representatives has introduced a bipartisan bill that would increase the amount of the Section 45F tax credit a business can claim for investing in eligible childcare services for its employees. Dubbed the “Child Care for American Families Act,” the bill places special emphasis on small businesses and those located in low-income and rural areas. Specifically, the bill would increase the percentage of businesses’ qualified childcare expenditures from 25% to 40%. For businesses with 500 or fewer employees, the credit would increase to 50% and for businesses located in eligible census tracts, it would increase to 60%. The bill would also increase the credit’s maximum value.
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