Referred to the House Committee on Ways and Means.
Creates a new tax credit (section 45BB) for employers who increase wages paid to child care workers.
The credit equals the lesser of an applicable percentage (5% generally; 7% in rural areas) of qualified child care wages or the year-over-year increase in those wages, and requires an increase in average hourly child care wages to qualify.
Defines qualified workers, wages, and eligible child care facilities (at least six children, receives payment, complies with laws).
Modest, targeted incentive with bipartisan potential but constrained by revenue impact, procedural hurdles, and need for scoring/offsets.
Relative to its intended legislative type, this bill clearly establishes a new employer tax credit to incentivize increased wages for child care providers, with specific formulaic provisions and statutory definitions and with appropriate linkages into existing tax-credit machinery. It lacks fiscal exposition, some administrative detail, and explicit safeguards against foreseeable gaming or edge cases.
Liberals emphasize workforce pay and care quality improvements.
Liberals emphasize workforce pay and care quality improvements.
Likely supportive because the bill directly targets higher wages for child care workers and aims to strengthen the child care workforce.
Views the rural bonus positively but may see the credit percentage as too small to meet living-wage goals.
Sees employer-focused incentive as acceptable but would prefer broader measures or direct public investment.
Views the bill as a pragmatic, modest incentive to encourage wage increases in the child care sector while limiting federal outlays.
Appraises the rural differential and the year-over-year requirement as sensible controls.
Wants clearer cost estimates and guardrails against unintended windfalls.
Skeptical of expanding tax-code incentives that subsidize employers and add complexity.
Prefers market-driven wage adjustments and state or private solutions.
May accept employer-focused incentives over direct spending, but generally wants tighter limits and fiscal offsets.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Modest, targeted incentive with bipartisan potential but constrained by revenue impact, procedural hurdles, and need for scoring/offsets.
The bill has not accumulated any surfaced votes yet.
Liberals emphasize workforce pay and care quality improvements.
Modest, targeted incentive with bipartisan potential but constrained by revenue impact, procedural hurdles, and need for scoring/offsets.
Relative to its intended legislative type, this bill clearly establishes a new employer tax credit to incentivize increased wages for child care providers, with specific formulaic provisions and statutory definitions an…
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