H.R. 8023

119 HR 8023 IH: To amend the Internal Revenue Code of 1986 to provide a credit for increasing wages paid to child care providers.
 U.S. House of Representatives
 2026-03-19
 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.
 I  119th CONGRESS  2d Session  H. R. 8023  IN THE HOUSE OF REPRESENTATIVES   March 19, 2026   Ms. Sánchez  (for herself and  Mrs. Miller of West Virginia ) introduced the following bill; which was referred to the  Committee on Ways and Means    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 lesser of—
(1)
the applicable percentage of the qualified child care wages paid or incurred by the employer for such taxable year, or
(2)
the excess (if any) of—
(A)
the qualified child care wages paid or incurred by the employer for such taxable year, over
(B)
the qualified child care wages paid or incurred by the employer for the preceding taxable year.
(b)
Requirement of increase in annual average hourly child care wage
(1)
In general
No credit shall be determined under subsection (a) with respect to any employer for any taxable year unless such employer’s average hourly child care wage for such taxable year exceeds such employer’s average hourly child care wage for the preceding taxable year.
(2)
Average hourly child care wage
For purposes of this subsection, the term  average hourly child care wage  means, with respect to any employer for any taxable year, the ratio of—
(A)
the qualified child care wages paid or incurred by such employer for such taxable year, divided by
(B)
the total number of hours of service for which such wages were paid or incurred.
(c)
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).
(d)
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.
(e)
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.