Child Care for American Families Act

Child Care for American Families Act

This bill increases and revises the employer-provided child care tax credit. It
increases the rate of such credit from 25% to 40% (50% for certain small
businesses and 60% for child care facilities located in an eligible census
track).

The bill increases the limitation on the dollar amount of the credit to $1.2
million in any taxable year and imposes a $2 million limit on the aggregate
amount of child care expenditures that may be taken into account for purposes of
calculating the credit.

The bill directs the Internal Revenue Service to issue guidance regarding
multi-employer facilities and to establish a public awareness program to inform
taxpayers about the availability of the child care credit and filing procedures
for such credit.