US HB8023

Creates a new tax credit (Section 45BB) for employers who increase wages paid to child care workers, equal to the lesser of the applicable percentage of qualified wages or the year-over-year increase in wages paid

Sets the credit rate at 5% of qualified child care wages, with an enhanced 7% rate for facilities located in rural areas

Requires employers to demonstrate an increase in their average hourly child care wage compared to the prior taxable year to qualify for the credit

Eligible facilities must provide care for at least 6 individuals, receive payment for services, and comply with all applicable state and local regulations

Allows the credit to be claimed as part of the general business credit with an elective direct payment option; applies to taxable years beginning after enactment