This bill would create a refundable tax credit to help people start or expand small, at‑home family child care. It lets qualified providers get back up to $5,000 for certain startup costs from either the current tax year or the year before .

• Who is affected: People who run licensed or registered family child care in their own home, meet state and local rules, and care for at least two children who are not their own for a significant part of the year.
• What’s covered: Costs like licensing fees; supplies (diapers, food, toys, learning materials); liability insurance; fencing and playground equipment; furniture; one employee’s salary; a computer and printer; required training; and any home fixes needed to meet state licensing rules.
• How much: Up to $5,000 as a refundable credit for qualified startup expenses from the current or previous tax year .
• Limits and timing: You can claim this credit only once, you can’t also claim another tax break for the same expense, and the credit ends 7 years after it becomes law.
• Oversight: The IRS will issue guidance and may coordinate with state and local licensing offices to make this work smoothly.