Linda Sánchez (D-CA)
To amend the Internal Revenue Code of 1986 to provide a credit for increasing wages paid to child care providers.
A Democratic bill with 1 Republican cosponsor · See all 3 cosponsors
Last activity — Referred to the House Committee on Ways and Means.
In committee
Introduced and handed to a committee in the chamber it started in.
The committee holds it, and most bills are never heard from again. A hearing or a committee vote would be news; silence is the usual outcome, and it kills the bill without anyone voting against it.
Its path through Congress
- Introduced
- In Committee
What this bill would do
This bill proposes to amend the Internal Revenue Code of 1986 to create a new "Child Care Supply Credit." The credit is designed for employers who increase the wages paid to qualified child care workers. To qualify, an employer's average hourly child care wage must be higher than the previous taxable year. The credit amount is based on a percentage of qualified wages or the excess of current wages over previous wages. This credit applies differently depending on whether the facility is in a rural area.
Yes· 3 of 21
- Scored +4
Does this make it easier to run a small business?
Small business child care providers benefit directly from tax credits offsetting increased wage expenses.
- Scored +3
Would households on low incomes be better off under this?
Child care workers typically earn modest wages, and wage increases directly benefit lower-income households.
- Scored +3
Would business owners be better off under this?
Child care facility owners and employers receive tax credits to help offset the cost of raising employee wages.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Increased Wages for Workers: The bill provides a credit for employers who increase wages paid to qualified child care workers (Section 45BB(a)).
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Additional Support for Rural Areas: Employers of eligible child care facilities located in rural areas receive a higher applicable percentage of 7 percent compared to the standard 5 percent (Section 45BB(c)(2)).
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Financial Benefits for Eligible Facilities: An eligible child care facility is defined as one that provides services for at least 6 individuals and receives a fee, payment, or grant for those services (Section 45BB(d)(3)).
Potential Negative Impacts for People
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Wage Increase Requirement: An employer cannot receive the credit unless their average hourly child care wage for the current taxable year is higher than the average hourly wage from the preceding year (Section 45BB(b)(1)).
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Restrictions on Credit Amount: The credit is limited to the lesser of the applicable percentage of qualified wages or the excess of current qualified wages over the previous year's qualified wages (Section 45BB(a)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Tap or hover a score for the reason it gave.
- Demographic And Interest Groups
- Would business owners be better off under this? — Child care facility owners and employers receive tax credits to help offset the cost of raising employee wages. Would households on low incomes be better off under this? — Child care workers typically earn modest wages, and wage increases directly benefit lower-income households. Would people in rural areas be better off under this? — Rural child care facilities receive an enhanced tax credit percentage (7 percent) to support wage increases in underserved areas. Would women be better off under this? — The child care workforce is overwhelmingly female, making them the primary beneficiaries of wage-increasing incentives. Would children be better off under this? — Higher retention and better-compensated child care staff can improve the quality of care provided to children. Would people in their twenties and thirties be better off under this? — Many child care workers are younger adults who stand to benefit from increased wages. Would Black Americans be better off under this? — African American women are disproportionately represented in the early childhood education and child care workforce. Would Hispanic Americans be better off under this? — Hispanic women are also significantly represented in the child care labor force and benefit from wage increases. Would immigrants be better off under this? — Immigrant workers make up a substantial portion of the child care workforce and can benefit from higher wages. Would men be better off under this? — Male workers in the child care sector also benefit from increased wage incentives. Would people in middle age be better off under this? — Middle-aged workers in the child care sector may benefit from increased wage incentives. Would middle-income households be better off under this? — Families relying on child care may benefit from a more stable and better-supported workforce. Would people in cities be better off under this? — Urban child care facilities qualify for the baseline tax credit supporting wage increases.
- Economy And Finance
- Does this make it easier to run a small business? — Small business child care providers benefit directly from tax credits offsetting increased wage expenses. Does this cut taxes for small businesses? — The bill provides a tax credit to employers for increasing the wages paid to child care providers. Is this likely to grow the economy? — Supporting child care workers and facilities can indirectly bolster broader economic participation by improving child care availability. Is this likely to create jobs? — By incentivizing investment in child care facilities and staff wages, it may help stabilize and grow the child care workforce.
- Social Issues And Justice
- Does this make child care cost less? — By supporting child care providers and encouraging higher wages, the bill aims to strengthen the supply and quality of child care services. Does this narrow the gap between how men and women are treated? — The child care workforce is predominantly female, so measures to increase their wages can have a positive impact on gender equity. Is this likely to lift people out of poverty? — Increasing wages for low-wage child care workers helps support household financial stability.
- Environment Energy And Infrastructure
- Does this invest in rural communities? — The bill provides an increased tax credit percentage (7 percent instead of 5 percent) for child care facilities located in rural areas.
- 9/15/2026
- 1 Cosponsor added.
- 6/8/2026
- 1 Cosponsor added.
- 3/19/2026
- Referred to the House Committee on Ways and Means.
- 1 Cosponsor added.
- Introduced in House
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
J. CorreaDemocrat · California
Carol MillerRepublican · West Virginia
Andrea SalinasDemocrat · Oregon