Share with your friends

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.


Related content

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.

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


loading image Request for proposal