Right Start Child Care and Education Act of 2026
- Bill Number
- S. 4918
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-06-24: Read twice and referred to the Committee on Finance.
- Last Updated
- 2026-07-09T16:03:47Z
AI-Generated Summary
Summary of S. 4918: Right Start Child Care and Education Act of 2026
Purpose
This legislation aims to encourage individuals to obtain degrees or credentials in child care fields and to work in licensed child care settings by offering tax incentives through the Internal Revenue Code.
Key Provisions
- New Tax Credit Creation: The bill adds Section 36C to the Internal Revenue Code, establishing the "Right Start Child Care and Education Credit."
- Eligible individuals can claim a credit of $4,500 (with a bachelor's degree in early childhood education or a related field), $3,000 (with an associate's degree), or $1,500 (with a Child Development Associate credential).
- Eligibility Requirements: To qualify, an individual must:
- Hold the specified degree from an eligible educational institution or an active credential.
- Work at least 1,200 hours per year in a licensed child care facility where the main purpose is providing child care, with limits on serving one's own children and compliance with state or local licensing rules.
- Duration Limit: The credit can be claimed for up to three taxable years, requiring an election each year, and no more than three prior years of use.
- Effective Date: Applies to taxable years beginning after December 31, 2026.
- Conforming Changes: Updates related tax code sections to treat the credit as refundable and includes it in refund provisions under Title 31 of the U.S. Code.
Significant Changes to Existing Law
- Introduces a new refundable tax credit specifically targeted at child care workers with relevant education or credentials, expanding the list of available credits under Subpart C of the Internal Revenue Code.
- No prior equivalent incentive existed for this exact combination of education and employment in child care facilities.
Potential Impacts
- On Government Agencies: Increases administrative responsibilities for the Internal Revenue Service in processing and verifying claims; may reduce federal tax revenue due to credit payouts.
- On Citizens: Provides financial benefits to qualifying child care workers, potentially improving retention and attracting new entrants to the field; could indirectly support families by expanding the child care workforce.
- On International Relations: No direct effects identified.
Main Stakeholders Affected
- Child care providers and workers seeking degrees or credentials.
- Students pursuing early childhood education or related programs.
- Licensed child care facilities.
- Parents and families relying on child care services.
- Federal tax authorities and Congress.
Notable Legal, Constitutional, or Political Implications
- Operates as a tax policy measure within existing constitutional authority over taxation and spending.
- Raises no apparent conflicts with constitutional protections, such as equal protection or due process.
- Represents a targeted federal incentive program, potentially influencing state-level child care regulations through increased workforce participation.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (2)
Sen. King, Angus S., Jr. [I-ME], Sen. Klobuchar, Amy [D-MN]
Recent Actions
- 2026-06-24: Read twice and referred to the Committee on Finance.
- 2026-06-24: Introduced in Senate
Bill Versions
- Right Start Child Care and Education Act of 2026 — issued 2026-06-24 — PDF (5 pages)