H.R.3155 - Child Care for American Families Act (119th Congress)
Summary
H.R.3155, the Child Care for American Families Act, proposes amendments to the Internal Revenue Code of 1986 to enhance the employer-provided child care credit. The bill aims to increase the credit amount, especially for small businesses and facilities in eligible areas (census tracts or rural counties). It also raises the dollar limitation on the credit and qualified child care expenditures and mandates guidance on multi-employer facilities, information dissemination, and a GAO study on regulatory barriers.
Expected Effects
The bill would likely incentivize employers, particularly small businesses, to provide or support child care services for their employees. This could lead to increased access to affordable child care, especially in underserved areas. The GAO study could identify and potentially reduce regulatory burdens affecting child care providers.
Potential Benefits
- Increased access to employer-provided child care, particularly for families with young children.
- Financial relief for employers who provide child care benefits, especially small businesses.
- Potential for improved workforce participation as child care becomes more accessible.
- Targeted support for child care facilities in economically disadvantaged areas.
- Greater awareness of the employer-provided child care credit through a public awareness program.
Potential Disadvantages
- Increased government spending due to enhanced tax credits.
- Potential complexity in determining eligibility for the increased credit percentages.
- Possible administrative burden for employers to comply with the new regulations.
- The effectiveness of the public awareness program may vary.
- The GAO study's recommendations may not be fully implemented or effective.
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution, as it aims to support families and improve access to child care. Specifically, the preamble states the intention to "promote the general Welfare". The bill's provisions related to taxation fall under the powers granted to Congress in Article I, Section 8, which allows Congress to lay and collect taxes, duties, imposts, and excises to pay the debts and provide for the common defense and general welfare of the United States.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).