FOR IMMEDIATE RELEASE
June 23, 2026
Contact: minority_jecpress@jec.senate.gov
NEW DATA: Businesses, Families Could Save Thousands on Child Care Through Underutilized Tax Cuts
Committee Scenarios Find that a Sample Business Could Get $820,000 in Direct Tax Savings & More than $8 Million in ROI; a Parent at the Business Could Save Nearly $10,000
Report Builds Case for Proposed Bipartisan Bill to Increase Awareness of These Tax Cuts Through Dedicated IRS Liaison
WASHINGTON – The U.S. Congress Joint Economic Committee - Minority issued a report today with new calculations on potential savings for both businesses and their employees through increased use of existing child care tax cuts. Scenarios created by the Committee and informed by conversations with experts and businesses show that a sample business could get $820,000 in direct tax savings over the first five years that it provides child care benefits to its employees and see an $8 million return-on-investment (ROI). A parent working at this sample company could save nearly $10,000 in child care expenses over that same time period.
The report underscores how businesses and parents could benefit from the proposed bipartisan Child Care Tax Benefit Outreach and Assistance Act – led by Senator Maggie Hassan (D-NH), Ranking Member of the Committee, and Senator Dan Sullivan (R-AK). The legislation would create a Business Child Care Liaison at the IRS to educate businesses about child care tax cuts that are underutilized.
“Families, businesses, and the strength of America’s workforce all suffer when hardworking parents can’t afford the child care that they need for their kids,” said Ranking Member Hassan. “This new report lays out the significant, concrete savings that parents and businesses alike could get if they use child care tax cuts that are already on the books. The creation of a dedicated liaison at the IRS to expand awareness about these tax cuts and remove barriers to accessing them would be a meaningful, commonsense step to lower costs and strengthen the workforce.”
To illustrate the potential savings from increased utilization of three existing child care tax cuts, the Committee crafted two sample scenarios of businesses providing child care benefits. To inform the scenarios, the Committee analyzed existing research on benefits to businesses when they invest in child care, utilized data from the Government Accountability Office and the Department of Treasury, and spoke with experts and business leaders. By the numbers:
Scenario 1: Over five years, a large business spends $2.8 million to build and operate an on-site child care facility but leverages tax cuts to directly recoup $820,000 – nearly a third of the costs – through the tax credits. The company gets another $8.1 million in benefits over that time from reduced employee turnover and increased productivity. Over that same five-year period, the parents who work at the company save nearly $10,000 thanks to the new facility and additional child care tax credits.
Scenario 2: A large business decides to offer discounted child care benefits through an existing off-site provider. The business spends $1.1 million annually on off-site child care but leverages tax cuts to get a yearly refund of $440,000. The company yields another $3.2 million in benefits from reduced employee turnover and increased productivity. The parents who work at the company also save upwards of $5,450 each year thanks to the off-site facility and additional child care tax credits.
Click here to see the full Joint Economic Committee – Minority report.
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