SPROUT Act of 2026
Allows eligible early-childhood centers to deduct the full adjusted basis of qualifying property in its first service year.
In the House Ways and Means Committee since Oct. 1, 2026, 7 days after it was introduced. Most bills never leave committee.
- INTRODUCEDINTROOCT 1, 2026
- COMMITTEECOMM.IN COMMITTEE
- HOUSEHOUSE—
- SENATESENATE—
- LAWLAW—
What the bill would do, and why it matters
Tax rules affect the cost of property used for early-childhood care. The SPROUT Act would let taxpayers elect to deduct the full adjusted basis of qualifying center property in the year it is placed in service. The property would have to meet eligibility rules, including a service-date limit.
- INTRODUCED ONLY This bill has been introduced and possibly referred to a committee, but it has not passed any vote. Most introduced bills never become law — they die in committee without a hearing.
- DATA NOTE No Congressional Research Service summary was available.
- Allow a full first-year deduction
A taxpayer who elects to use the allowance could deduct 100% of the adjusted basis of qualifying early-childhood-center property in the year it is placed in service. The basis would then be reduced by the deduction before calculating any other depreciation deductions for that year or later years.
- Limit which centers qualify
Eligible property must be nonresidential real property used as part of a state-licensed center providing care to children under 5, placed in service in the United States or a possession, and first used by the taxpayer. A taxpayer that is not licensed must have a written binding contract with a licensed provider before construction begins; the property generally must be placed in service before December 31, 2031.
- Apply special rules to qualifying property
The bill would treat a qualified early childhood education center as section 1245 property for tax purposes and direct the Treasury Secretary to issue regulations or other guidance. The Secretary could extend the placed-in-service date if an act of God prevents timely placement in service.
The bill would change when eligible taxpayers can take depreciation deductions for early-childhood-center property: it would allow the full adjusted basis to be deducted in the year the property is placed in service, rather than leaving that basis available for depreciation in later years. The practical effect would be a tax benefit tied to investment in qualifying center property, with the amount depending on the property and taxpayer.
Written from the bill text.
The path it took, step by step
- IntroducedOCT 1, 2026HOUSEOCT 1, 2026By Rep. CrankReferred to Ways and Means
- SAME DAYNOWHouse committeeOCT 1, 2026WAYS & MEANS NOWOCT 1, 2026In committee for 7 daysNo hearing yet
- 7 DAYS SO FARPassed the House—HOUSE FLOOR—Not scheduled
- Senate committee—SENATE—
- Passed the Senate—SENATE FLOOR—Not scheduled
- Resolve differencesONLY IF NEEDEDBOTH CHAMBERSONLY IF NEEDEDSkipped if the other chamber passes the same text
- Signed into law—PRESIDENT—10 days to sign or veto
- OCT 12026OCT 1, 2026REFERREDHOUSEReferred to the House Committee on Ways and Means.
- OCT 12026OCT 1, 2026INTRODUCEDHOUSEIntroduced in House
At day 7, this bill is already older than 3% of the laws passed this Congress were when they were signed.
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