119-HR-8023 Journalist Public Summary
119 · HR 8023 To amend the Internal Revenue Code of 1986 to provide a credit for increasing wages paid to child care providers.
A bipartisan House bill would create a new small business tax credit tied to raising child care workers’ pay, with a higher rate for rural areas, aiming to expand child care supply and stabilize the workforce.
Headline Summary
A bipartisan proposal would give employers a new tax credit when they boost wages for child care workers, with a higher credit for rural providers, to help add child care slots and keep teachers on the job.
What It Does
The bill (H.R. 8023) creates a new Child Care Supply Credit under the tax code (proposed IRC §45BB). Employers could claim a small credit on child care worker wages, at a higher rate in rural areas, and only if their average hourly pay for these workers rises compared with the prior year. The credit would be treated as part of the general business credit, include protections against “double dipping,” and allow elective payment for eligible entities. These mechanics mirror a Senate bill on the same concept. (congress.gov)
Who’s For It
- House sponsors: Rep. Linda Sánchez (D‑CA) and Rep. Carol Miller (R‑WV) — signaling bipartisan interest in child care workforce pay and supply.
- Early childhood policy groups that favor using tax credits to expand child care access (for example, First Five Years Fund) generally support tax tools aimed at affordability and supply. (ffyf.org)
- Workforce researchers who link higher wages to lower turnover in early care and education argue that pay-focused policies can stabilize staffing. (minneapolisfed.org)
Who’s Against It
- No formal opposition statements were available at introduction; debate will likely focus on cost and design.
- Skeptics of business tax credits may argue employer‑focused credits can be complex and slower to expand slots than direct funding for providers or families; background on the existing employer child care credit (IRC §45F) shows how such credits work and the trade‑offs policymakers weigh. (irs.gov)
What’s Next
Status as of March 19, 2026: H.R. 8023 was introduced and referred to the House Ways and Means Committee. Next steps typically include a committee hearing and markup before any House floor vote. A Senate bill with the same core idea (S. 3534) is already on file, which could serve as a companion vehicle. (congress.gov)
Discussion