U.S. Sens. Marsha Blackburn (R-TN) and Michael Bennet (D-CO) introduced legislation that seeks to strengthen the employer-provided childcare credit.
The Bipartisan Policy Center found that 31.7 percent of children below the age of six with working parents do not have access to childcare. In rural communities, that number rises to 35.1 percent.
The Child Care for American Families Act would expand the employer-provided childcare credit to cover a greater percentage of childcare expenses, equal to:
• 60% for businesses in eligible rural and low-income areas, up to a maximum of $1.2 million annually;
• 50% for small businesses, up to a maximum of $1 million annually; and
• 40% for all other businesses, up to a maximum of $800,000 annually.
“Many families across Tennessee and America are struggling to find reliable and affordable childcare, and we need to incentivize businesses to invest in child-care services for their employees,” Blackburn said. “Our Child Care for American Families Act would help alleviate the financial burden of child-care costs by expanding and modernizing the Employer-Provided Child Care Tax Credit.”
The bill also directs the U.S. Department of the Treasury to issue guidance on multi-employer facilities.
“Childcare costs are rising nationwide, and countless families lack access to affordable, high-quality childcare. This makes things that much harder for working parents, strains families’ budgets, and adds undue stress for families with young children,” said Senator Bennet. “The Child Care for American Families Act will help increase our country’s childcare supply and reduce the number of Americans in childcare deserts.”
The bill is endorsed by Save the Children, Colorado Executives Partnering to Invest in Children (EPIC), Kindercare, and Early Care & Education Consortium (ECEC).