S. 3534

119 S3534 IS: To amend the Internal Revenue Code of 1986 to provide a credit for increasing wages paid to child care providers.
 U.S. Senate
 2025-12-17
 text/xml
 EN
 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
 II  119th CONGRESS  1st Session  S. 3534  IN THE SENATE OF THE UNITED STATES   December 17, 2025   Mr. Warner  (for himself and  Mr. Justice ) introduced the following bill; which was read twice and referred to the  Committee on Finance    A BILL
To amend the Internal Revenue Code of 1986 to provide a credit for increasing wages paid to child care providers.
1.
Child care supply credit
(a)
In general
Subpart D of part IV of subchapter A of  chapter 1  of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:
45BB.
Child care supply credit
(a)
In general
For purposes of section 38, the amount of the child care supply credit determined under this section with respect to any employer for any taxable year is an amount equal to the applicable percentage of the qualified child care wages paid or incurred by the employer.
(b)
Applicable percentage
For purposes of this section—
(1)
In general
Except as provided in paragraph (2), the applicable percentage is 5 percent.
(2)
Rural areas
(A)
In general
In the case of qualified child care wages paid or incurred with respect to employment at an eligible childcare facility which is located in a rural area, the applicable percentage is 7 percent.
(B)
Rural area defined
For purposes of this paragraph, the term  rural area  means any area other than an urban area (as defined in section 101(a)(35) of title 23, United States Code).
(c)
Definitions
For purposes of this section—
(1)
Qualified child care wages
(A)
In general
The term  qualified child care wages  means wages paid to qualified child care workers.
(B)
Wages
The term  wages  has the meaning given such term by subsection (b) of section 3306 (determined without regard to any dollar limitation contained in such section). Such term shall not include any amount taken into account for purposes of determining any other credit allowed under this subpart.
(2)
Qualified child care worker
(A)
In general
The term  qualified child care worker  means any employee who—
(i)
is employed at an eligible child care facility, and
(ii)
provides child care services.
(3)
Eligible child care facility
The term  eligible child care facility  means any facility which—
(A)
provides child care services for at least 6 individuals,
(B)
receives a fee, payment, or grant for providing such services, and
(C)
complies with all applicable laws and regulations of a State or unit of local government.
(4)
Child care services
The term  child care services  means the providing of care, education, protection, supervision, or guidance to children.
(d)
Election To have credit not apply
(1)
In general
A taxpayer may elect to have this section not apply for any taxable year.
(2)
Other rules
Rules similar to the rules of paragraphs (2) and (3) of section 51(j) shall apply for purposes of this subsection.
 .
(b)
Credit treated as part of general business credit
 Section 38(b)  of the Internal Revenue Code of 1986 is amended by striking  plus  at the end of paragraph (40), by striking the period at the end of paragraph (41) and inserting  , plus , and by adding at the end the following new paragraph:
(42)
the child care supply credit determined under section 45BB(a).
 .
(c)
Elective payment
 Section 6417(b)  of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:
(13)
The child care supply credit determined under section 45BB(a).
 .
(d)
Denial of double benefit
 Section 280C(a)  of the Internal Revenue Code of 1986 is amended by inserting  45BB(a),  after  45S(a), .
(e)
Clerical amendment
The table of sections for subpart D of part IV of subchapter A of  chapter 1  of the Internal Revenue Code of 1986 is amended by adding at the end the following new item:
Sec. 45BB. Child care supply credit.
  .
(f)
Effective date
The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.