Child Care Tax Benefit Outreach and Assistance Act
- Sponsor
- Sen. Hassan, Margaret Wood [D-NH]
- Committees
- Finance Committee (primary)
- Last action
- Mar 12, 2026
Bottom line
The bill creates a dedicated IRS liaison to enhance outreach and assistance for businesses seeking to offer employer-provided child care benefits, aiming to increase their utilization of related tax incentives.
What it actually does
This bill amends the Internal Revenue Code of 1986 to establish a Business Child Care Liaison within the Internal Revenue Service (IRS). The liaison's primary role is to promote employer-provided child care benefits by educating businesses on available tax incentives, facilitating communication between businesses and the IRS, and recommending legislative or administrative changes to expand these benefits. The liaison is also tasked with coordinating with other federal and state agencies and submitting annual reports to Congress.
Proponents argue
Supporters argue that a dedicated Business Child Care Liaison will bridge a critical information gap, making it easier for businesses, especially small and medium-sized enterprises, to understand and access existing tax benefits for employer-provided child care. This initiative is expected to boost the availability of child care options, support workforce participation, and improve employee recruitment and retention, ultimately strengthening the economy.
Opponents contend
Critics might contend that creating a new liaison position within the IRS adds unnecessary bureaucracy and administrative costs without addressing the fundamental financial barriers or complexities of the existing tax code that truly deter businesses from providing child care benefits. They may argue that the problem lies more with the adequacy of the incentives themselves rather than a lack of awareness.
The bill is very concise and easy to read, allowing ample time for a thorough evaluation of its provisions.
Section 2, amending Section 7803 of the Internal Revenue Code of 1986
Establishment and Duties of the Business Child Care Liaison
This provision mandates the Commissioner of Internal Revenue to appoint a Business Child Care Liaison within the IRS. This liaison will act as a central point of contact and facilitator between the IRS, businesses, child care advocates, and various government agencies. Key duties include providing public education on employer-provided child care benefits (such as on-site care, Dependent Care Flexible Spending Accounts, and the 45F credit), issuing fact sheets for tax preparers, facilitating communication about operational challenges, establishing a resource link on SAM.gov, recommending legislative changes, and coordinating with other federal and state entities on outreach. The liaison is also required to submit annual reports to Congress detailing activities, problems identified, and recommendations.
Supporters argue
Supporters argue that a dedicated liaison will significantly reduce the complexity and information barriers that prevent many businesses from offering child care benefits. By centralizing resources and expertise, the liaison can effectively promote economic growth by supporting working families and improving business productivity.
Critics contend
Critics might argue that while the intent is good, the creation of a new federal position may not be the most efficient or effective way to address the underlying issues. They may suggest that the existing tax benefits are either too complex or insufficient, and a liaison alone cannot overcome these fundamental challenges.
Tradeoffs
This provision balances the need for targeted outreach and simplification of complex tax incentives with concerns about expanding government bureaucracy. It aims to improve the utilization of existing programs but relies on the effectiveness of a new administrative role to achieve broader policy goals.