8/22/2024
With the recent introduction of new legislation in the U.S. Senate to expand child care tax incentives, momentum continues to build for tax code changes proposed by Reps. Lori Chavez-DeRemer (OR-05) and Salud Carbajal (CA-24), which would increase access to quality child care and lower costs of care for American families. The Child Care Investment Act, introduced by the lawmakers in August 2023, has the support of the U.S. Chamber of Commerce, the Problem Solvers Caucus, and a range of child care advocacy groups.
According to the Economic Policy Institute, the cost of care for one infant takes up 22 percent of an average Oregon family’s income. That number soars to nearly 40 percent for a family of four.
“The soaring cost of child care has left it out of reach for too many families, which forces parents to make difficult financial and career decisions,” Chavez-DeRemer said. “The Child Care Investment Act is not only an investment in hardworking families, but it’s also an investment in the future success and growth of our communities.”
“Child care is not just a family issue. It is an economic issue,” said Carbajal. “We continue to see there is growing interest in updating our tax code to ensure every Central Coast family can get access to quality, affordable child care.”
The Child Care Investment Act would improve a tax credit aimed at helping employers provide child care options to their employees, allow multiple businesses to partner to create a new child care option, and expand federal tax write-offs that already exist to offset child care expenses. This includes updating caps on tax-exempt child care spending accounts to reflect the current cost of care. A more detailed summary is available HERE.
The bipartisan legislation is endorsed by the U.S. Chamber of Commerce, the Bipartisan Policy Center, First Five Years Fund, Early Care & Education Consortium, Learning Care Group, Save the Children, KinderCare, and the National Association of Women Business Owners.
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