03/12/2026 | Press release | Distributed by Public on 03/12/2026 15:34
WASHINGTON - U.S. Senators Maggie Hassan (D-NH) and Dan Sullivan (R-AK) introduced legislation to help more businesses take advantage of federal child care tax incentives, which would make it easier for working families to access and afford child care.
"We need to make sure that businesses are able to take advantage of every available tool to help their workers afford child care," said Senator Hassan. "This bipartisan legislation will help cut through the confusion around federal child care tax incentives, increase awareness among businesses about these incentives, and make it easier for Granite State businesses and employers across the country to invest in the child care that their employees need to stay in the workforce."
"Quality child care is not only essential for the well-being of families, it is also key to a thriving economy and a strong workforce," said Sen. Sullivan. "I hear repeatedly from Alaska parents that the lack of affordable child care is one of their top concerns, and the data backs that up. Sixty-one percent of Alaskans are living in communities classified as child care 'deserts,' and too many families struggle to find reliable, affordable care close to home. This legislation will help employers, providers, and other nonprofits better utilize federal tools for employees-specifically the significant expansion of federal incentives in the Working Families Tax Cuts Act for child care facilities and the provisions that expand opportunities and support for working families."
Federal tax incentives designed to help businesses provide child care benefits are widely underutilized, even as working parents across the country struggle with the cost and availability of child care. Greater awareness of these incentives among businesses could help expand access to child care for many working families - and help more businesses hire and retain workers. The Child Care Tax Benefit Outreach and Assistance Act would direct the IRS to appoint a Business Child Care Liaison who would be responsible for building relationships between the child care sector and business community, coordinating with other federal agencies to educate employers about child care tax incentives, and identify and recommend to Congress potential legislative and administrative changes to improve the utilization of these incentives.
The bill is supported by the following organizations: U.S. Chamber of Commerce, Bipartisan Policy Center Action, Buffett Early Childhood Institute at the University of Nebraska, Child Care Aware of America, Early Care and Education Consortium, Early Learning NH, Executives Partnering to Invest in Children (EPIC), First Five Years Fund, Moms First, New Futures, and YMCA of the USA.
Click here to see statements of support for this legislation.
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