Sen. Tim Kaine, D-Va., plans to introduce bipartisan legislation Wednesday that aims to make child care more affordable and accessible by strengthening existing tax credits to lower costs and aiming to increase the number of child care providers.
He along with Sen. Katie Britt, R-Ala., will introduce two bills: the Child Care Availability and Affordability Act and the Child Care Workforce Act. Together they create a proposal meant to lower the cost of child care while attracting more workers to the industry and reducing the turnover caused by low pay.
“What makes (the proposal) so different is instead of just increasing the funding ... for Head Start and child care, we are increasing the attractiveness and amount of these tax credit programs for both individuals and employers that really can help individuals afford child care and incentivize employers to offer child care as a more robust benefit for employees,” Kaine said in an interview.
People are also reading…
The legislation proposes an increase to the Child and Dependent Care Tax Credit and would make it refundable, which would let low-income families with no tax liability utilize the credit for the first time.
It also proposes changes to the Dependent Care Assistance Program to let families deduct 50% more in expenses up to $7,500.
Proposed changes to the Employer-Provided Child Care Tax Credit, which Kaine called “grossly underutilized,” would encourage businesses to provide child care for their employees by increasing tax credit against their corporate tax liability.
The second piece of legislation would authorize a pilot program to boost the supply of child care workers through direct grants.
The proposal is split into two pieces of legislation because tax bills go through the Senate Finance Committee and workforce bills go through the Senate Health, Education, Labor and Pensions Committee.