Child Care for Economic Recovery Act

IIB 116TH CONGRESS 2D SESSION H. R. 7327 IN THE SENATE OF THE UNITED STATES JULY 30, 2020 Received; read twice and referred to the Committee on Appropriations AN ACT Making additional supplemental appropriations for disaster relief requirements for the fiscal year ending September 30, 2020, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 03:38 Jul 31, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H7327.RFS H7327 pamtmann on DSKBC07HB2PROD with BILLS 2 HR 7327 RFS SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Child Care for Eco- 2 nomic Recovery Act’’. 3 SEC. 2. REFERENCES. 4 Except as expressly provided otherwise, any reference 5 to ‘‘this Act’’ contained in any division of this Act shall 6 be treated as referring only to the provisions of that divi- 7 sion. 8 DIVISION A—EMERGENCY CHILD CARE 9 SUPPORT APPROPRIATIONS 10 The following sums in this Act are appropriated, out 11 of any money in the Treasury not otherwise appropriated, 12 for the fiscal year ending September 30, 2020, and for 13 other purposes, namely: 14 TITLE I—DEPARTMENT OF THE TREASURY 15 INTERNAL REVENUE SERVICES 16 TAXPAYER SERVICES 17 For an additional amount for ‘‘Taxpayer Services’’, 18 $5,000,000, to remain available until expended, for mak- 19 ing grants under the Community Volunteer Income Tax 20 Assistance Matching Grants Program established under 21 section 7526A of the Internal Revenue Code of 1986: Pro- 22 vided, That the matching funds requirement in section 23 7526A(b)(2) shall not apply to funds made available under 24 this heading in this Act: Provided further, That such 25 amount is designated by the Congress as being for an 26 VerDate Sep 11 2014 03:38 Jul 31, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H7327.RFS H7327 pamtmann on DSKBC07HB2PROD with BILLS 3 HR 7327 RFS emergency requirement pursuant to section 1 251(b)(2)(A)(i) of the Balanced Budget and Emergency 2 Deficit Control Act of 1985. 3 TITLE II—DEPARTMENT OF HEALTH AND 4 HUMAN SERVICES 5 ADMINISTRATION FOR CHILDREN AND FAMILIES 6 SOCIAL SERVICES BLOCK GRANT 7 For an additional amount for ‘‘Social Services Block 8 Grant’’, $850,000,000, to remain available until Sep- 9 tember 30, 2021, for making grants to States pursuant 10 to section 2002 of the Social Security Act: Provided, That 11 the amount made available under this heading in this Act 12 shall be used for necessary expenses for family care for 13 essential workers, pursuant to section 409 of division B 14 this Act: Provided further, That such amount is designated 15 by the Congress as being for an emergency requirement 16 pursuant to section 251(b)(2)(A)(i) of the Balanced Budg- 17 et and Emergency Deficit Control Act of 1985. 18 CHILD CARE AND DEVELOPMENT FUND 19 For an additional amount for ‘‘Child Care and Devel- 20 opment Fund’’, $10,000,000,000, to remain available 21 until September 30, 2024, for necessary expenses for in- 22 frastructure grants to improve child care safety, including 23 needs assessments, pursuant to section 418A of Part A 24 of title IV of the Social Security Act, as added by division 25 VerDate Sep 11 2014 03:38 Jul 31, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H7327.RFS H7327 pamtmann on DSKBC07HB2PROD with BILLS 4 HR 7327 RFS B of this Act: Provided, That funds made available under 1 this heading in this Act may be used for grants for the 2 construction, alteration, or renovation of non-federally 3 owned facilities to improve child care safety: Provided fur- 4 ther, That all construction, alteration, or renovation work, 5 carried out in whole or in part with funds appropriated 6 under this heading in this Act, shall be subject to the re- 7 quirements of subchapter IV of chapter 31 of title 40, 8 United States Code (commonly referred to as the ‘‘Davis- 9 Bacon Act’’): Provided further, That such amount is des- 10 ignated by the Congress as being for an emergency re- 11 quirement pursuant to section 251(b)(2)(A)(i) of the Bal- 12 anced Budget and Emergency Deficit Control Act of 1985. 13 TITLE III—GENERAL PROVISIONS—THIS 14 DIVISION 15 SEC. 301. Each amount appropriated or made avail- 16 able by this Act is in addition to any amounts otherwise 17 appropriated for the fiscal year involved. 18 SEC. 302. No part of any appropriation contained in 19 this Act shall remain available for obligation beyond the 20 current fiscal year unless expressly so provided herein. 21 SEC. 303. Unless otherwise provided for by this Act, 22 the additional amounts appropriated by this Act to appro- 23 priations accounts shall be available under the authorities 24 VerDate Sep 11 2014 03:38 Jul 31, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H7327.RFS H7327 pamtmann on DSKBC07HB2PROD with BILLS 5 HR 7327 RFS and conditions applicable to such appropriations accounts 1 for fiscal year 2020. 2 SEC. 304. Each amount designated in this Act by the 3 Congress as being for an emergency requirement pursuant 4 to section 251(b)(2)(A)(i) of the Balanced Budget and 5 Emergency Deficit Control Act of 1985 shall be available 6 (or rescinded or transferred, if applicable) only if the 7 President subsequently so designates all such amounts 8 and transmits such designations to the Congress. 9 SEC. 305. Any amount appropriated by this Act, des- 10 ignated by the Congress as an emergency requirement 11 pursuant to section 251(b)(2)(A)(i) of the Balanced Budg- 12 et and Emergency Deficit Control Act of 1985 and subse- 13 quently so designated by the President, and transferred 14 pursuant to transfer authorities provided by this Act shall 15 retain such designation. 16 BUDGETARY EFFECTS 17 SEC. 306. (a) STATUTORY PAYGO SCORECARDS.— 18 The budgetary effects of division B shall not be entered 19 on either PAYGO scorecard maintained pursuant to sec- 20 tion 4(d) of the Statutory Pay-As-You-Go Act of 2010. 21 (b) SENATE PAYGO SCORECARDS.—The budgetary 22 effects of division B shall not be entered on any PAYGO 23 scorecard maintained for purposes of section 4106 of H. 24 Con. Res. 71 (115th Congress). 25 VerDate Sep 11 2014 03:38 Jul 31, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H7327.RFS H7327 pamtmann on DSKBC07HB2PROD with BILLS 6 HR 7327 RFS (c) CLASSIFICATION OF BUDGETARY EFFECTS.— 1 Notwithstanding Rule 3 of the Budget Scorekeeping 2 Guidelines set forth in the joint explanatory statement of 3 the committee of conference accompanying Conference Re- 4 port 105–217 and section 250(c)(8) of the Balanced 5 Budget and Emergency Deficit Control Act of 1985, the 6 budgetary effects of division B shall not be estimated— 7 (1) for purposes of section 251 of such Act; and 8 (2) for purposes of paragraph (4)(C) of section 9 3 of the Statutory Pay-As-You-Go Act of 2010 as 10 being included in an appropriation Act. 11 This division may be cited as the ‘‘Emergency Child 12 Care Support Appropriations Act, 2020’’. 13 DIVISION B—WORKER ACCESS 14 TO CHILD AND FAMILY CARE 15 SEC. 401. SHORT TITLE. 16 This division may be cited as the ‘‘Worker Access to 17 Child and Family Care Act’’. 18 SEC. 402. REFUNDABILITY AND ENHANCEMENT OF CHILD 19 AND DEPENDENT CARE TAX CREDIT. 20 (a) TREATMENT OF CREDIT AS REFUNDABLE.—Sec- 21 tion 21 of the Internal Revenue Code of 1986 is amended 22 by adding at the end the following new subsection: 23 ‘‘(g) TREATMENT OF CREDIT AS REFUNDABLE.—In 24 the case of an individual other than a nonresident alien, 25 VerDate Sep 11 2014 03:38 Jul 31, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H7327.RFS H7327 pamtmann on DSKBC07HB2PROD with BILLS 7 HR 7327 RFS the credit allowed under subsection (a) shall be treated 1 as a credit allowed under subpart C (and not allowed 2 under this subpart).’’. 3 (b) INCREASE IN APPLICABLE PERCENTAGE.—Sec- 4 tion 21(a)(2) of such Code is amended— 5 (1) by striking ‘‘35 percent’’ and inserting ‘‘50 6 percent’’, and 7 (2) by striking ‘‘$15,000’’ and inserting 8 ‘‘$120,000’’. 9 (c) INCREASE IN DOLLAR LIMIT ON AMOUNT CRED- 10 ITABLE.—Section 21(c) of such Code is amended— 11 (1) by striking ‘‘$3,000’’ in paragraph (1) and 12 inserting ‘‘$6,000’’, and 13 (2) by striking ‘‘$6,000’’ in paragraph (2) and 14 inserting ‘‘twice the amount in effect under para- 15 graph (1)’’. 16 (d) INFLATION ADJUSTMENT.—Section 21(e) of such 17 Code is amended by adding at the end the following new 18 paragraph: 19 ‘‘(11) INFLATION ADJUSTMENT.—In the case of 20 any taxable year beginning after December 31, 21 2020, the $120,000 amount in subsection (a)(2) and 22 the $6,000 amount in subsection (c)(1) shall each be 23 increased by an amount equal to— 24 ‘‘(A) such dollar amount, multiplied by 25 VerDate Sep 11 2014 03:38 Jul 31, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H7327.RFS H7327 pamtmann on DSKBC07HB2PROD with BILLS 8 HR 7327 RFS ‘‘(B) the cost-of-living adjustment deter- 1 mined under section 1(f)(3) for the calendar 2 year in which the taxable year begins, deter- 3 mined by substituting ‘2019’ for ‘2016’ in sub- 4 paragraph (A)(ii) thereof. 5 If any increase determined under this paragraph is 6 not a multiple of $100, such increase shall be round- 7 ed to the next highest multiple of $100.’’. 8 (e) CONFORMING AMENDMENT.—Section 1324(b)(2) 9 of title 31, United States Code, is amended by inserting 10 ‘‘21 (by reason of subsection (g) thereof),’’ before ‘‘25A’’. 11 (f) COORDINATION WITH POSSESSION TAX SYS- 12 TEMS.—Section 21(g)(1) of the Internal Revenue Code of 13 1986 (as added by this section) shall not apply to any per- 14 son— 15 (1) to whom a credit is allowed against taxes 16 imposed by a possession with a mirror code tax sys- 17 tem by reason of the application of section 21 of 18 such Code in such possession for such taxable year, 19 or 20 (2) to whom a credit would be allowed against 21 taxes imposed by a possession which does not have 22 a mirror code tax system if the provisions of section 23 21 of such Code had been in effect in such posses- 24 sion for such taxable year. 25 VerDate Sep 11 2014 03:38 Jul 31, 2020 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H7327.RFS H7327 pamtmann on DSKBC07HB2PROD with BILLS 9 HR 7327 RFS (g) EFFECTIVE DATE.—The amendments made by 1 this section shall apply to taxable years beginning after 2 December 31, 2019. 3 SEC. 403. INCREASE IN EXCLUSION FOR EMPLOYER-PRO- 4 VIDED DEPENDENT CARE ASSISTANCE. 5 (a) IN GENERAL.—Section 129(a)(2)(A) of the Inter- 6 nal Revenue Code of 1986 is amended by striking ‘‘$5,000 7 ($2,500’’ and inserting ‘‘$10,500 (half such dollar 8 amount’’. 9 (b) INFLATION ADJUSTMENT.—Section 129(a)(2) is 10 amended by adding at the end the following new subpara- 11 graph: 12 ‘‘(D) INFLATION ADJUSTMENT.—In the 13 case of any taxable year beginning after Decem- 14 ber 31, 2020, the $10,500 amount in subpara- 15 graph (A) shall be increased by an amount 16 equal to— 17 ‘‘(i) such dollar amount, multiplied by 18 ‘‘(ii) the cost-of-living adjustment de- 19 termined under section 1(f)(3) for the cal- 20 endar year in which the taxable year be- 21 gins, determined by substituting ‘2019’ for 22 ‘2016’ in subparagraph (A)(ii) thereof. 23 Any increase determined under the preceding 24 sentence which is not a multiple of $50, shall 25 VerDate Sep 11 2014 03:38 Jul 31, 2020 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H7327.RFS H7327 pamtmann on DSKBC07HB2PROD with BILLS 10 HR 7327 RFS be rounded to the next highest multiple of 1 $50.’’. 2 (c) EFFECTIVE DATE.—The amendment made by 3 this section shall apply to taxable years beginning after 4 December 31, 2019. 5 (d) PLAN AMENDMENTS.—A plan or other arrange- 6 ment that otherwise satisfies all applicable requirements 7 of sections 106, 125, and 129 of the Internal Revenue 8 Code of 1986 (including any rules or regulations there- 9 under) shall not fail to be treated as a cafeteria plan or 10 dependent care flexible spending arrangement merely be- 11 cause such plan or arrangement is amended pursuant to 12 the amendments made by this section and such amend- 13 ment is retroactive, if— 14 (1) such amendment is adopted no later than 15 the last day of the first plan year beginning after 16 December 31, 2019, and 17 (2) the plan or arrangement is operated con- 18 sistent with the terms of such amendment during 19 the period beginning on the effective date of the 20 amendment and ending on the date the amendment 21 is adopted. 22 VerDate Sep 11 2014 03:38 Jul 31, 2020 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H7327.RFS H7327 pamtmann on DSKBC07HB2PROD with BILLS 11 HR 7327 RFS SEC. 404. PAYROLL CREDIT FOR CERTAIN FIXED EXPENSES 1 OF CHILD CARE FACILITIES SUBJECT TO 2 CLOSURE BY REASON OF COVID–19. 3 (a) IN GENERAL.—In the case of an eligible em- 4 ployer, there shall be allowed as a credit against applicable 5 employment taxes for each calendar quarter an amount 6 equal to 50 percent of the qualified fixed expenses paid 7 or incurred by such employer during such calendar quar- 8 ter. 9 (b) LIMITATIONS AND REFUNDABILITY.— 10 (1) OVERALL QUARTERLY DOLLAR LIMITA- 11 TION.—The qualified fixed expenses which may be 12 taken into account under subsection (a) (determined 13 after the application of paragraph (2)) by any eligi- 14 ble employer for any calendar quarter shall not ex- 15 ceed the least of— 16 (A) the qualified fixed expenses paid by the 17 eligible employer in the same calendar quarter 18 of calendar year 2019, 19 (B) $25,000,000, or 20 (C) the greater of— 21 (i) 25 percent of the wages paid with 22 respect to the employment of all the em- 23 ployees of the eligible employer for such 24 calendar quarter, or 25 VerDate Sep 11 2014 03:38 Jul 31, 2020 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H7327.RFS H7327 pamtmann on DSKBC07HB2PROD with BILLS 12 HR 7327 RFS (ii) 6.25 percent of the gross receipts 1 of the eligible employer for calendar year 2 2019. 3 (2) PER FACILITY QUARTERLY DOLLAR LIMITA- 4 TION.—The qualified fixed expenses which may be 5 taken into account under subsection (a) by any eligi- 6 ble employer for any calendar quarter with respect 7 to any facility of such employer shall not exceed 8 $50,000. 9 (3) CREDIT LIMITED TO CERTAIN EMPLOYMENT 10 TAXES.—The credit allowed by subsection (a) with 11 respect to any calendar quarter shall not exceed the 12 applicable employment taxes for such calendar quar- 13 ter (reduced by any credits allowed under sub- 14 sections (e) and (f) of section 3111 of such Code, 15 sections 7001 and 7003 of the Families First 16 Coronavirus Response Act, and section 2301 of the 17 CARES Act, for such quarter) on the wages pai [Text truncated for display. 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