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Internal Revenue Code of 1986

The main body of tax laws in the United States, which outlines rules for taxes, credits, and deductions.

Employer-provided child care credit

A tax credit available to businesses that help their employees with child care expenses, reducing the amount of tax they owe.

Qualified child care expenditures

Specific costs related to child care services or facilities that a business can count towards the tax credit.

Applicable percentage

The specific percentage of qualified child care expenses a business can claim as a tax credit, which varies based on factors like business size or facility location.

Eligible small business

A business that qualifies for an enhanced tax credit, defined in this bill as having 500 or fewer employees on average over the previous two years.

Eligible area

A geographical area, such as certain low-income census tracts or rural counties, where child care facilities receive a higher tax credit.

Taxable year

The annual accounting period for which an individual or organization files an income tax return, typically a calendar year.