House passes child care support bill, includes tax provisions (COVID-19)

House passes child care support bill

The U.S. House of Representatives yesterday passed the “Child Care for Economic Recovery Act” (H.R. 7327) by a vote of 250 to 161. The bill would aim to provide relief in response to the coronavirus (COVID-19) pandemic.


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Read text of H.R. 7327

The bill contains tax provisions including measures that would:

  • Modify the amount, refundability, and other provisions of the child and dependent care tax credit
  • Increase the exclusion for employer-provided dependent care assistance
  • Provide a new refundable payroll credit for certain fixed-expenses of certain child care facilities
  • Provide a new refundable payroll credit for certain employee dependent care expenses paid by employers
  • Allow increased flexibility for dependent care flexible spending arrangements
  • Expand the employee retention credit to employment of domestic employees
  • Provide $5 million in supplemental appropriations to allow the IRS to make grants under the Community Volunteer Income Tax Assistance Matching Grants Program

What’s next?

The bill will now be sent to the Senate where its prospects are uncertain.

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