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H.R. 10512House119th Congress (2025-2027)In Committee

Child Care Tax Benefit Outreach and Assistance Act

Sponsored by David KustoffRep. David Kustoff (R-TN)
Introduced September 21, 2026

AI-Generated Summary

Updated September 26, 2026 at 7:56 AM UTC

The Child Care Tax Benefit Outreach and Assistance Act would add a new Business Child Care Liaison position within the Internal Revenue Service. The liaison’s job is to connect the IRS with employers, child‑care providers, state agencies, tribal groups and other stakeholders to promote and explain employer‑provided child‑care tax benefits. The role is aimed at helping businesses expand child‑care offerings for their employees and at reporting progress to Congress.

Key Provisions

  • The IRS Commissioner must appoint a Business Child Care Liaison, who can have additional support staff as needed.
  • The liaison will act as a bridge between the IRS and employers, child‑care advocates, state workforce boards, tribal organizations, and other partners.
  • Responsibilities include public education on employer‑provided child‑care benefits, issuing fact sheets for tax preparers, and helping businesses navigate programs like dependent‑care assistance, flexible spending accounts, and the child‑care tax credit (section 45F).
  • Within 120 days of enactment, the liaison must work with GSA to add a dedicated child‑care resource link on the SAM.gov website.
  • The liaison will identify and recommend legislative or administrative changes to improve employer‑provided child‑care benefits and coordinate outreach with multiple federal agencies and state/local governments.
  • Compensation for the liaison is set at the Executive Schedule Level V rate.
  • Each year, the liaison must submit a detailed report to the Senate Finance Committee and the House Ways and Means Committee, summarizing assistance requests, activities, challenges, recommendations, and data on employer use of child‑care tax benefits; the report must also be made publicly available.

Legislative Activity

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HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

September 21, 2026

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HouseIntro Referral

Introduced in House

September 21, 2026

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

September 21, 2026

Bill Text

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Introduced in HouseIssued September 21, 2026

I

119th CONGRESS

2d Session

H. R. 10512

IN THE HOUSE OF REPRESENTATIVES

September 21, 2026

Mr. Kustoff introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to create a Business Child Care Liaison within the Internal Revenue Service.

1.

Short title

This Act may be cited as the Child Care Tax Benefit Outreach and Assistance Act.

2.

Business child care liaison

Section 7803 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

(g)

Business Child Care Liaison

(1)

In general

The Commissioner of Internal Revenue shall appoint within the Internal Revenue Service a Business Child Care Liaison. The appointment shall be made without regard to the provisions of title 5, United States Code, relating to appointments in the competitive service or Senior Executive Service. At the Commissioner's discretion, the Commissioner may create an office with additional support staff to assist the Business Child Care Liaison in carrying out the duties described in this subsection.

(2)

Duties

The Business Child Care Liaison shall—

(A)

act as a liaison between the Internal Revenue Service, employer-provided child care benefit advocates, businesses considering providing or expanding child care benefits for their employees, State workforce boards, State economic development agencies, child care resource and referral agencies, tribal organizations (as defined in section 4(l) of the Indian Self-Determination and Education Assistance Act), and other stakeholders, including child development experts,

(B)

provide public education and assistance related to the expansion of employer-provided child care benefits through the establishment and maintenance of practices that promote employer-provided child care benefits, including the use of dependent care assistance programs (as defined in section 129(d)), on-site or subsidized child care, Dependent Care Flexible Spending Accounts, child care stipends, near-site child care partnerships, shared and pooled child-care arrangements, backup child care, and resource and referral services,

(C)

issue a fact sheet for use by tax return preparers listing the different tax benefits for employer-provided child care and the appropriate rules for each such benefit,

(D)

help facilitate communication between businesses and the Internal Revenue Service about the operational challenges and opportunities that exist to improve the use of Federally incentivized child care benefits such as dependent care assistance programs (as so defined), Dependent Care Flexible Spending Accounts, and the credit under section 45F,

(E)

in collaboration with the General Services Administration, within 120 days of the date of the enactment of this subsection, establish a link on the homepage of SAM.gov, which allows website visitors to access a landing page on the SAM.gov website which is tailored to helping businesses learn about utilizing dependent care assistance programs (as so defined), Dependent Care Flexible Spending Accounts, and the credit under section 45F, resources for understanding the rules and regulations with these programs, and the benefits of utilizing these programs on worker recruitment, retention, productivity, and well-being,

(F)

identify and recommend to Congress potential legislative and administrative changes to increase practices that promote employer-provided child care benefits, and

(G)

coordinate with other Federal agencies and officials, including the Secretary, the Administrator of the Small Business Administration, the Secretary of Commerce, the Secretary of Health and Human Services, the Secretary of the Interior, the Secretary of Labor, and the Secretary of Education, or the designee of any such individual, and State and local governments on outreach and education to inform employers and employees about the possibilities and benefits of employer-provided child care benefits and particularly reducing information barriers for small businesses.

(3)

Consultation and input

The Commissioner of Internal Revenue shall solicit advice and input from the Business Child Care Liaison in developing regulations or interpretations of this title that relate to employer-provided child care benefits.

(4)

Compensation

The Business Child Care Liaison shall be entitled to compensation at the same rate as the rate of basic pay in effect for a position at level V of the Executive Schedule under section 5316 of title 5, United States Code.

(5)

Annual report

(A)

In general

Not later than December 31 of each calendar year beginning after the date of the enactment of this subsection, the Business Child Care Liaison shall submit a report to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives on the activities of the Business Child Care Liaison during the fiscal year ending during such calendar year.

(B)

Contents

Each report submitted pursuant to subparagraph (A) shall—

(i)

summarize the assistance requests received by the Business Child Care Liaison during the fiscal year ending during the calendar year of such report,

(ii)

describe the activities conducted by the Business Child Care Liaison, including the activities described under subparagraphs (B) and (F) of paragraph (2), and evaluate the effectiveness of the Business Child Care Liaison during such fiscal year,

(iii)

describe any significant problems the Business Child Care Liaison has identified during such fiscal year and ways to mitigate such problems,

(iv)

contain recommendations for any administrative or legislative action which may be appropriate to resolve barriers to, and to incentivize, practices which promote employer-provided child care benefits, and

(v)

describe progress related to employer-provided child care benefits in businesses in the United States, including data updated at least annually on the utilization of dependent care assistance programs, Dependent Care Flexible Spending Accounts, and the credit under section 45F, in particular—

(I)

the number of employers utilizing these tax benefits,

(II)

a breakdown of the size of employers utilizing these tax benefits, and

(III)

other relevant information as deemed appropriate by the Business Child Care Liaison.

(C)

Concurrent submission

The Business Child Care Liaison shall submit a copy of each report submitted pursuant to subparagraph (A) to the Commissioner of Internal Revenue, and any other appropriate official, at the same time such report is submitted pursuant to such subparagraph.

(D)

Public availability

The Commissioner shall make a copy of each report submitted pursuant to subparagraph (A) available and widely accessible to the public.

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