Child Care Tax Benefit Outreach and Assistance Act
- Bill Number
- H.R. 10512
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-09-21: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-09-30T17:16:47Z
AI-Generated Summary
Summary of H.R. 10512: Child Care Tax Benefit Outreach and Assistance Act
Purpose of the Legislation
This bill aims to improve awareness and use of tax benefits that encourage employers to offer child care support to employees. It does so by creating a dedicated position within the Internal Revenue Service (IRS) to serve as a central point of contact and resource for businesses, tax professionals, and related groups.
Key Provisions Outlined
- Creation of the Business Child Care Liaison: The IRS Commissioner must appoint this liaison, who may operate with additional staff if needed. The role is exempt from standard federal hiring rules for competitive or senior executive positions.
- Duties of the Liaison:
- Serve as a connection point between the IRS and groups such as employer advocates, businesses, state workforce agencies, child care referral services, tribal organizations, and child development experts.
- Offer public education on employer-provided child care options, including dependent care assistance programs (tax-advantaged plans under section 129 of the tax code), on-site or subsidized care, flexible spending accounts, stipends, backup care, and referral services.
- Prepare a fact sheet for tax return preparers detailing available tax benefits and their rules.
- Help businesses communicate with the IRS about challenges in using incentives like dependent care assistance programs, flexible spending accounts, and the section 45F tax credit.
- Collaborate with the General Services Administration to add a dedicated link and landing page on SAM.gov within 120 days of enactment, providing guidance on these programs and their benefits for hiring, retention, and productivity.
- Recommend to Congress any legislative or administrative changes to boost employer child care practices.
- Coordinate outreach with other federal agencies (such as the Small Business Administration, Departments of Commerce, Health and Human Services, Interior, Labor, and Education) and state/local governments, with special focus on small businesses.
- Input on Regulations: The IRS Commissioner must seek the liaison's advice when creating rules related to employer child care benefits.
- Compensation: The liaison receives pay equivalent to level V of the Executive Schedule under title 5 of the U.S. Code.
- Annual Reporting: Starting the first December 31 after enactment, the liaison must submit a yearly report to the Senate Finance Committee and House Ways and Means Committee. Reports must cover assistance requests, activities and effectiveness, identified problems and solutions, recommendations for changes, and data on utilization of the tax benefits (including employer numbers, size breakdowns, and other relevant metrics). Copies go to the IRS Commissioner and others, with public availability required.
Significant Changes to Existing Law Introduced
The bill adds a new subsection (g) to section 7803 of the Internal Revenue Code of 1986. This establishes the Business Child Care Liaison as a permanent IRS role with specific outreach, education, and coordination responsibilities focused on child care tax incentives. No other sections of the tax code are altered.
Potential Impacts
- On Government Agencies: The IRS gains a new specialized position and possible support office, along with requirements to integrate the liaison into regulatory processes and publicize reports. Other agencies (such as the General Services Administration and those listed above) must collaborate on outreach efforts, including website updates.
- On Citizens and Businesses: Employers, especially small businesses, gain easier access to information on tax benefits for providing child care, which may encourage wider adoption. Employees could see expanded options like on-site care or stipends. Tax preparers receive targeted guidance tools.
- On International Relations: No direct effects are specified in the legislation.
Main Stakeholders Affected
- Employers and businesses considering or offering child care benefits.
- The Internal Revenue Service and its Commissioner.
- Federal agencies including the Small Business Administration, Departments of Commerce, Health and Human Services, Interior, Labor, and Education.
- State workforce boards, economic development agencies, and local governments.
- Child care resource and referral agencies, tribal organizations, and child development experts.
- Tax return preparers and employees seeking child care support.
Notable Legal, Constitutional, or Political Implications
The legislation creates an administrative position within an existing executive agency without altering core tax rules or benefit structures. It includes standard reporting requirements to congressional committees but raises no explicit constitutional questions in the text. The focus remains on internal government coordination and information sharing to support existing tax incentives.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2026-09-21: Referred to the House Committee on Ways and Means.
- 2026-09-21: Introduced in House
- 2026-09-21: Introduced in House
Bill Versions
- Child Care Tax Benefit Outreach and Assistance Act — issued 2026-09-21 — PDF (8 pages)