Creates a new federal tax credit that lets eligible licensed family child care providers claim up to $5,000 of qualifying startup expenses as a credit against their federal income tax. The credit is limited by rules to prevent double benefits, requires Treasury to issue implementing regulations, is added to the Internal Revenue Code, and sunsets after seven years.

The credit applies to amounts paid or incurred after enactment and is intended to lower the cost barrier for opening or formalizing licensed home‑based child care businesses by offsetting initial costs such as equipment, licensing, and other qualifying startup expenses.