,i #aafth ,,congress #b;d ,session ,h4 ,r4 #gcbg ,,in ,,the ,,house ,,of ,,representatives ,june #be1 #bjbj ,mrs4 ,lowey 7for herself1 ,mr4 ,neal1 ,ms4 ,de,lauro1 ,ms4 ,clark of ,massachusetts1 ,mr4 ,danny ,k4 ,davis of ,illinois1 and ,ms4 ,snchez7 introduced the following bill2 which was referred to the ,committee on ,appropriations1 and in addition to the ,committees on the ,budget1 and ,ways and ,means1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,making additional supplemental appropriations for disaster relief requirements for the fiscal year ending ,september #cj1 #bjbj1 and for other purposes4 #a4 ,short ,title ,this ,act may be cited as the ,child ,care for ,economic ,recovery ,act4 #b4 ,references ,except as expressly provided otherwise1 any reference to this ,act contained in any division of this ,act shall be treated as referring only to the provisions of that division4 ,a ,emergency ,child ,care ,support ,appropriations ,the following sums in this ,act are appropriated1 out of any money in the ,treasury not otherwise appropriated1 for the fiscal year ending ,september #cj1 #bjbj1 and for other purposes1 namely3 ,i ,department of the ,treasury ,internal ,revenue ,services ,taxpayer ,services ,for an additional amount for ,taxpayer ,services1 #e1jjj1jjj1 to remain available until expended1 for making grants under the ,community ,volunteer ,income ,tax ,assistance ,matching ,grants ,program established under section #gebf;,a of the ,internal ,revenue ,code of #aihf3 ,provided1 ,that the matching funds requirement in section #gebf;,a7b77#b7 shall not apply to funds made available under this heading in this ,act3 ,provided further1 ,that such amount is designated by the ,congress as being for an emergency requirement pursuant to section #bea7;b77#b77;,a77i7 of the ,balanced ,budget and ,emergency ,deficit ,control ,act of #aihe4 ,,ii ,department of ,health and ,human ,services ,administration for ,children and ,families ,social ,services ,block ,grant ,for an additional amount for ,social ,services ,block ,grant1 #hej1jjj1jjj1 to remain available until ,september #cj1 #bjba1 for making grants to ,states pursuant to section #bjjb of the ,social ,security ,act3 ,provided1 ,that the amount made available under this heading in this ,act shall be used for necessary expenses for family care for essential workers1 pursuant to section #dji of division ,b this ,act3 ,provided further1 ,that such amount is designated by the ,congress as being for an emergency requirement pursuant to section #bea7;b77#b77;,a77i7 of the ,balanced ,budget and ,emergency ,deficit ,control ,act of #aihe4 ,,child ,,care ,,and ,,development ,,fund ,for an additional amount for ,child ,care and ,development ,fund1 #aj1jjj1jjj1jjj1 to remain available until ,september #cj1 #bjbd1 for necessary expenses for infrastructure grants to improve child care safety1 including needs assessments1 pursuant to section #dah;,a of ,part ,a of title ,,iv of the ,social ,security ,act1 as added by division ,b of this ,act3 ,provided1 ,that funds made available under this heading in this ,act may be used for grants for the construction1 alteration1 or renovation of non-federally owned facilities to improve child care safety3 ,provided further1 ,that all construction1 alteration1 or renovation work1 carried out in whole or in part with funds appropriated under this heading in this ,act1 shall be subject to the requirements of subchapter ,,iv of chapter #ca of title #dj1 ,united ,states ,code 7commonly referred to as the ,davis-,bacon ,act73 ,provided further1 ,that such amount is designated by the ,congress as being for an emergency requirement pursuant to section #bea7;b77#b77;,a77i7 of the ,balanced ,budget and ,emergency ,deficit ,control ,act of #aihe4 ,,iii ,general ,provisions--,this ,division #cja4 ,each amount appropriated or made available by this ,act is in addition to any amounts otherwise appropriated for the fiscal year involved4 #cjb4 ,no part of any appropriation contained in this ,act shall remain available for obligation beyond the current fiscal year unless expressly so provided herein4 #cjc4 ,unless otherwise provided for by this ,act1 the additional amounts appropriated by this ,act to appropriations accounts shall be available under the authorities and conditions applicable to such appropriations accounts for fiscal year #bjbj4 #cjd4 ,each amount designated in this ,act by the ,congress as being for an emergency requirement pursuant to section #bea7;b77#b77;,a77i7 of the ,balanced ,budget and ,emergency ,deficit ,control ,act of #aihe shall be available 7or rescinded or transferred1 if applicable7 only if the ,president subsequently so designates all such amounts and transmits such designations to the ,congress4 #cje4 ,any amount appropriated by this ,act1 designated by the ,congress as an emergency requirement pursuant to section #bea7;b77#b77;,a77i7 of the ,balanced ,budget and ,emergency ,deficit ,control ,act of #aihe and subsequently so designated by the ,president1 and transferred pursuant to transfer authorities provided by this ,act shall retain such designation4 #cjf4 ,budgetary ,effects 7a7 ,statutory ,,paygo ,scorecards ,the budgetary effects of division ,b shall not be entered on either ,,paygo scorecard maintained pursuant to section #d7;d7 of the ,statutory ,pay-,as-,you-,go ,act of #bjaj4 7b7 ,senate ,,paygo ,scorecards ,the budgetary effects of division ,b shall not be entered on any ,,paygo scorecard maintained for purposes of section #dajf of ,h4 ,con4 ,res4 #ga 7#aaeth ,congress74 7c7 ,classification of ,budgetary ,effects ,notwithstanding ,rule #c of the ,budget ,scorekeeping ,guidelines set forth in the joint explanatory statement of the committee of conference accompanying ,conference ,report #aje-bag and section #bej7;c77#h7 of the ,balanced ,budget and ,emergency ,deficit ,control ,act of #aihe1 the budgetary effects of division ,b shall not be estimated-- 7#a7 for purposes of section #bea of such ,act2 and 7#b7 for purposes of paragraph 7#d77;,c7 of section #c of the ,statutory ,pay-,as-,you-,go ,act of #bjaj as being included in an appropriation ,act4 ,this division may be cited as the ,emergency ,child ,care ,support ,appropriations ,act1 #bjbj4 ,b ,worker ,access to ,child and ,family ,care #dja4 ,short ,title ,this division may be cited as the ,worker ,access to ,child and ,family ,care ,act4 #djb4 ,refundability and enhancement of child and dependent care tax credit 7a7 ,treatment of credit as refundable ,section #ba of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7g7 ,treatment of credit as refundable ,in the case of an individual other than a nonresident alien1 the credit allowed under subsection 7a7 shall be treated as a credit allowed under subpart ,c 7and not allowed under this subpart74 4 7b7 ,increase in applicable percentage ,section #ba7;a77#b7 of such ,code is amended-- 7#a7 by striking #ce percent and inserting #ej percent1 and 7#b7 by striking #ae1jjj and inserting #abj1jjj4 7c7 ,increase in dollar limit on amount creditable ,section #ba7;c7 of such ,code is amended-- 7#a7 by striking #c1jjj in paragraph 7#a7 and inserting #f1jjj1 and 7#b7 by striking #f1jjj in paragraph 7#b7 and inserting twice the amount in effect under paragraph 7#a74 7d7 ,inflation adjustment ,section #ba7;e7 of such ,code is amended by adding at the end the following new paragraph3 7#aa7 ,inflation adjustment ,in the case of any taxable year beginning after ,december #ca1 #bjbj1 the #abj1jjj amount in subsection 7a77#b7 and the #f1jjj amount in subsection 7c77#a7 shall each be increased by an amount equal to-- 7,a7 such dollar amount1 multiplied by 7,b7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year in which the taxable year begins1 determined by substituting #bjai for #bjaf in subparagraph 7,a77ii7 thereof4 ,if any increase determined under this paragraph is not a multiple of #ajj1 such increase shall be rounded to the next highest multiple of #ajj4 4 7e7 ,conforming amendment ,section #acbd7;b77#b7 of title #ca1 ,united ,states ,code1 is amended by inserting #ba 7by reason of subsection 7g7 thereof71 before #be;,a4 7f7 ,coordination with possession tax systems ,section #ba7;g77#a7 of the ,internal ,revenue ,code of #aihf 7as added by this section7 shall not apply to any person-- 7#a7 to whom a credit is allowed against taxes imposed by a possession with a mirror code tax system by reason of the application of section #ba of such ,code in such possession for such taxable year1 or 7#b7 to whom a credit would be allowed against taxes imposed by a possession which does not have a mirror code tax system if the provisions of section #ba of such ,code had been in effect in such possession for such taxable year4 7g7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjai4 #djc4 ,increase in exclusion for employer-provided dependent care assistance 7a7 ,in general ,section #abi7;a77#b77;,a7 of the ,internal ,revenue ,code of #aihf is amended by striking #e1jjj 7#b1ejj and inserting #aj1ejj 7half such dollar amount4 7b7 ,inflation adjustment ,section #abi7;a77#b7 is amended by adding at the end the following new subparagraph3 7,d7 ,inflation adjustment ,in the case of any taxable year beginning after ,december #ca1 #bjbj1 the #aj1ejj amount in subparagraph 7,a7 shall be increased by an amount equal to-- 7i7 such dollar amount1 multiplied by 7ii7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year in which the taxable year begins1 determined by substituting #bjai for #bjaf in subparagraph 7,a77ii7 thereof4 ,any increase determined under the preceding sentence which is not a multiple of #ej1 shall be rounded to the next highest multiple of #ej4 4 7c7 ,effective date ,the amendment made by this section shall apply to taxable years beginning after ,december #ca1 #bjai4 7d7 ,plan amendments ,a plan or other arrangement that otherwise satisfies all applicable requirements of sections #ajf1 #abe1 and #abi of the ,internal ,revenue ,code of #aihf 7including any rules or regulations thereunder7 shall not fail to be treated as a cafeteria plan or dependent care flexible spending arrangement merely because such plan or arrangement is amended pursuant to the amendments made by this section and such amendment is retroactive1 if-- 7#a7 such amendment is adopted no later than the last day of the first plan year beginning after ,december #ca1 #bjai1 and 7#b7 the plan or arrangement is operated consistent with the terms of such amendment during the period beginning on the effective date of the amendment and ending on the date the amendment is adopted4 #djd4 ,payroll credit for certain fixed expenses of child care facilities subject to closure by reason of ,,covid-#ai 7a7 ,in general ,in the case of an eligible employer1 there shall be allowed as a credit against applicable employment taxes for each calendar quarter an amount equal to #ej percent of the qualified fixed expenses paid or incurred by such employer during such calendar quarter4 7b7 ,limitations and refundability 7#a7 ,overall quarterly dollar limitation ,the qualified fixed expenses which may be taken into account under subsection 7a7 7determined after the application of paragraph 7#b77 by any eligible employer for any calendar quarter shall not exceed the least of-- 7,a7 the qualified fixed expenses paid by the eligible employer in the same calendar quarter of calendar year #bjai1 7,b7 #be1jjj1jjj1 or 7,c7 the greater of-- 7i7 #be percent of the wages paid with respect to the employment of all the employees of the eligible employer for such calendar quarter1 or 7ii7 #f4be percent of the gross receipts of the eligible employer for calendar year #bjai4 7#b7 ,per facility quarterly dollar limitation ,the qualified fixed expenses which may be taken into account under subsection 7a7 by any eligible employer for any calendar quarter with respect to any facility of such employer shall not exceed #ej1jjj4 7#c7 ,credit limited to certain employment taxes ,the credit allowed by subsection 7a7 with respect to any calendar quarter shall not exceed the applicable employment taxes for such calendar quarter 7reduced by any credits allowed under subsections 7e7 and 7f7 of section #caaa of such ,code1 sections #gjja and #gjjc of the ,families ,first ,coronavirus ,response ,act1 and section #bcja of the ,,cares ,act1 for such quarter7 on the wages paid with respect to the employment of all the employees of the eligible employer for such calendar quarter4 7#d7 ,refundability of excess credit 7,a7 ,in general ,if the amount of the credit under subsection 7a7 exceeds the limitation of paragraph 7#c7 for any calendar quarter1 such excess shall be treated as an overpayment that shall be refunded under sections #fdjb7;a7 and #fdac7;b7 of the ,internal ,revenue ,code of #aihf4 7,b7 ,treatment of payments ,for purposes of section #acbd of title #ca1 ,united ,states ,code1 any amounts due to an employer under this paragraph shall be treated in the same manner as a refund due from a credit provision referred to in subsection 7b77#b7 of such section4 7c7 ,definitions ,for purposes of this section-- 7#a7 ,applicable employment taxes ,the term applicable employment taxes means the following3 7,a7 ,the taxes imposed under section #caaa7;a7 of the ,internal ,revenue ,code of #aihf4 7,b7 ,so much of the taxes imposed under section #cbba7;a7 of such ,code as are attributable to the rate in effect under section #caaa7;a7 of such ,code4 7#b7 ,eligible employer 7,a7 ,in general ,the term eligible employer means any employer-- 7i7 which was carrying on a trade or business engaged in the provision of child care assistance at a qualified child care facility 7within the meaning of section #de;,f7c77#b77;,a7 of such ,code without regard to the last sentence thereof7 at any time during calendar year #bjbj1 and 7ii7 with respect to any calendar quarter1 for which-- 7,i7 the operation of the trade or business described in clause 7i7 is fully or partially suspended during the calendar quarter due to orders from an appropriate governmental authority limiting commerce1 travel1 or group meetings 7for commercial1 social1 religious1 or other purposes7 due to the coronavirus disease #bjai 7,,covid-#ai71 or 7,,ii7 such calendar quarter is within the period described in subparagraph 7,b74 7,b7 ,significant decline in gross receipts ,the period described in this subparagraph is the period-- 7i7 beginning with the first calendar quarter beginning after ,december #ca1 #bjai1 for which gross receipts 7within the meaning of section #ddh7;c7 of the ,internal ,revenue ,code of #aihf7 for the calendar quarter are less than #ij percent of gross receipts for the same calendar quarter in the prior year1 and 7ii7 ending with the calendar quarter following the first calendar quarter beginning after a calendar quarter described in clause 7i7 for which gross receipts of such employer are greater than #ij percent of gross receipts for the same calendar quarter in the prior year4 7,c7 ,tax-exempt organizations ,in the case of an organization which is described in section #eja7;c7 of the ,internal ,revenue ,code of #aihf and exempt from tax under section #eja7;a7 of such ,code-- 7i7 any reference in this section to a trade or business shall be treated as a reference to the operations of such organization which are related to the provision of child care assistance 7within the meaning of subparagraph 7,a77i771 and 7ii7 any reference in this section to gross receipts shall be treated as a reference to gross receipts within the meaning of section #fjcc of the ,internal ,revenue ,code of #aihf4 7,d7 ,phase-in of credit where business not suspended and reduction in gross receipts less than #ej percent 7i7 ,in general ,in the case of any calendar quarter with respect to which an eligible employer would not be an eligible employer if subparagraph 7,b77i7 were applied by substituting #ej percent for #ij percent1 the amount of the credit allowed under subsection 7a7 shall be reduced by the amount which bears the same ratio to the amount of such credit 7determined without regard to this subparagraph7 as-- 7,i7 the excess gross receipts percentage point amount1 bears to 7,,ii7 #dj percentage points4 7ii7 ,excess gross receipts percentage point amount ,for purposes of this subparagraph1 the term excess gross receipts percentage point amount means1 with respect to any calendar quarter1 the excess of-- 7,i7 the lowest of the gross receipts percentage point amounts determined with respect to any calendar quarter during the period ending with such calendar quarter and beginning with the first calendar quarter during the period described in subparagraph 7,b71 over 7,,ii7 #ej percentage points4 7iii7 ,gross receipts percentage point amounts ,for purposes of this subparagraph1 the term gross receipts percentage point amount means1 with respect to any calendar quarter1 the percentage 7expressed as a number of percentage points7 obtained by dividing-- 7,i7 the gross receipts 7within the meaning of subparagraph 7,b77 for such calendar quarter1 by 7,,ii7 the gross receipts for the same calendar quarter in calendar year #bjai4 7#c7 ,qualified fixed expenses 7,a7 ,in general ,the term qualified fixed expenses means the payment or accrual1 in the ordinary course of the eligible employer's trade or business1 of any covered mortgage obligation1 covered rent obligation1 or covered utility payment4 ,such term shall not include the prepayment of any obligation for a period in excess of a month unless the payment for such period is customarily due in advance4 ,such term shall not include any payment or accrual of any obligation or payment which is with respect to property which is not located in the ,united ,states or any possession of the ,united ,states4 7,b7 ,application of definitions ,the terms covered mortgage obligation1 covered rent obligation1 and covered utility payment shall each have the same meaning as when used in section #aajf of the ,,cares ,act4 7#d7 ,secretary ,the term ,secretary means the ,secretary of the ,treasury or the ,secretary's delegate4 7#e7 ,wages 7,a7 ,in general ,the term wages means wages 7as defined in section #caba7;a7 of the ,internal ,revenue ,code of #aihf7 and compensation 7as defined in section #cbca7;e7 of such ,code74 ,for purposes of the preceding sentence 7other than for purposes of subsection 7b77#b771 wages as defined in section #caba7;a7 of such ,code shall be determined without regard to paragraphs 7#a71 7#h71 7#aj71 7#ac71 7#ah71 7#ai71 and 7#bb7 of section #caba7;b7 of such ,code4 7,b7 ,allowance for certain health plan expenses 7i7 ,in general ,such term shall include amounts paid or incurred by the eligible employer to provide and maintain a group health plan 7as defined in section #ejjj7;b77#a7 of the ,internal ,revenue ,code of #aihf71 but only to the extent that such amounts are excluded from the gross income of employees by reason of section #ajf7;a7 of such ,code4 7ii7 ,allocation rules ,for purposes of this section1 amounts treated as wages under clause 7i7 shall be treated as paid with respect to any employee 7and with respect to any period7 to the extent that such amounts are properly allocable to such employee 7and to such period7 in such manner as the ,secretary may prescribe4 ,except as otherwise provided by the ,secretary1 such allocation shall be treated as properly made if made on the basis of being pro rata among periods of coverage4 7#f7 ,employer ,the term employer means any employer 7as defined in section #cdja7;d7 of such ,code7 of at least one employee on any day in calendar year #bjbj4 7#g7 ,other terms ,except as otherwise provided in this section1 any term used in this section which is also used in chapter #ba or #bb of the ,internal ,revenue ,code of #aihf shall have the same meaning as when used in such chapter4 7d7 ,aggregation rule ,all persons treated as a single employer under subsection 7a7 or 7b7 of section #eb of the ,internal ,revenue ,code of #aihf1 or subsection 7m7 or 7o7 of section #dad of such ,code1 shall be treated as one employer for purposes of this section4 7e7 ,denial of double benefit ,for purposes of chapter #a of such ,code1 the gross income of any eligible employer1 for the taxable year which includes the last day of any calendar quarter with respect to which a credit is allowed under this section1 shall be increased by the amount of such credit4 7f7 ,certain governmental employers 7#a7 ,in general ,the credit under this section shall not be allowed to the ,federal ,government1 the government of any ,state1 of the ,district of ,columbia1 or of any possession of the ,united ,states1 any tribal government1 or any political subdivision1 agency1 or instrumentality of any of the foregoing4 7#b7 ,exception ,paragraph 7#a7 shall not apply to any organization described in section #eja7;c77#a7 of the ,internal ,revenue ,code of #aihf and exempt from tax under section #eja7;a7 of such ,code4 7g7 ,election not ,to have section apply ,this section shall not apply with respect to any eligible employer for any calendar quarter if such employer elects 7at such time and in such manner as the ,secretary may prescribe7 not to have this section apply4 7h7 ,transfers to certain trust funds ,there are hereby appropriated to the ,federal ,old-,age and ,survivors ,insurance ,trust ,fund and the ,federal ,disability ,insurance ,trust ,fund established under section #bja of the ,social ,security ,act 7#db ,u4,s4,c4 #dja7 and the ,social ,security ,equivalent ,benefit ,account established under section #ae;,a7a7 of the ,railroad ,retirement ,act of #aigd 7#de ,u4,s4,c4 #bcan-#a7;a77 amounts equal to the reduction in revenues to the ,treasury by reason of this section 7without regard to this subsection74 ,amounts appropriated by the preceding sentence shall be transferred from the general fund at such times and in such manner as to replicate to the extent possible the transfers which would have occurred to such ,trust ,fund or ,account had this section not been enacted4 7i7 ,treatment of deposits ,the ,secretary shall waive any penalty under section #ffef of such ,code for any failure to make a deposit of applicable employment taxes if the ,secretary determines that such failure was due to the anticipation of the credit allowed under this section4 7j7 ,third-,party payors ,any credit allowed under this section shall be treated as a credit described in section #ceaa7;d77#b7 of such ,code4 7k7 ,regulations and guidance ,the ,secretary shall issue such forms1 instructions1 regulations1 and guidance as are necessary-- 7#a7 to allow the advance payment of the credit under subsection 7a71 subject to the limitations provided in this section1 based on such information as the ,secretary shall require1 7#b7 regulations or other guidance to provide for the reconciliation of such advance payment with the amount of the credit at the time of filing the return of tax for the applicable quarter or taxable year1 7#c7 with respect to the application of the credit under subsection 7a7 to third-party payors 7including professional employer organizations1 certified professional employer organizations1 or agents under section #cejd of the ,internal ,revenue ,code of #aihf71 including regulations or guidance allowing such payors to submit documentation necessary to substantiate the eligible employer status of employers that use such payors1 7#d7 for application of subsection 7b77#a77;,a7 and subparagraphs 7,a77ii77,,ii7 and 7,b7 of subsection 7c77#b7 in the case of any employer which was not carrying on a trade or business for all or part of the same calendar quarter in the prior year1 and 7#e7 for recapturing the benefit of credits determined under this section in cases where there is a subsequent adjustment to the credit determined under subsection 7a74 7l7 ,application of section ,this section shall apply only to qualified fixed expenses paid or accrued in calendar quarters beginning on or after the date of the enactment of this ,act and before ,january #a1 #bjba4 #dje4 ,payroll credit for certain employee dependent care expenses paid by employers 7a7 ,in general ,in the case of an employer1 there shall be allowed as a credit against applicable employment taxes for each calendar quarter an amount equal to #cj percent of the qualified employee dependent care expenses paid by such employer with respect to such calendar quarter4 7b7 ,limitations and refundability 7#a7 ,dollar limitation per employee ,the qualified employee dependent care expenses which may be taken into account under subsection 7a7 with respect to any employee for any calendar quarter shall not exceed #b1ejj4 7#b7 ,credit limited to certain employment taxes ,the credit allowed by subsection 7a7 with respect to any calendar quarter shall not exceed the applicable employment taxes for such calendar quarter 7reduced by any credits allowed under subsections 7e7 and 7f7 of section #caaa of such ,code1 sections #gjja and #gjjc of the ,families ,first ,coronavirus ,response ,act1 section #bcja of the ,,cares ,act1 and section #d of this ,act1 for such quarter7 on the wages paid with respect to the employment of all the employees of the employer for such calendar quarter4 7#c7 ,refundability of excess credit 7,a7 ,in general ,if the amount of the credit under subsection 7a7 exceeds the limitation of paragraph 7#b7 for any calendar quarter1 such excess shall be treated as an overpayment that shall be refunded under sections #fdjb7;a7 and #fdac7;b7 of the ,internal ,revenue ,code of #aihf4 7,b7 ,treatment of payments ,for purposes of section #acbd of title #ca1 ,united ,states ,code1 any amounts due to an employer under this paragraph shall be treated in the same manner as a refund due from a credit provision referred to in subsection 7b77#b7 of such section4 7#d7 ,coordination with government grants ,the qualified employee dependent care expenses taken into account under this section by any employer shall be reduced by any amounts provided by any ,federal1 ,state1 or local government for purposes of making or reimbursing such expenses4 7c7 ,qualified employee dependent care expenses ,for purposes of this section1 the term qualified employee dependent care expenses means any amount paid to or for the benefit of an employee in the employment of the employer if-- 7#a7 such amount is dependent care assistance 7as defined in section #abi7;e77#a7 of the ,internal ,revenue ,code of #aihf71 and 7#b7 the employer elects 7at such time and in such manner as the ,secretary may provide7 to treat such amount as a qualified employee dependent care expense4 7d7 ,special rules2 other definitions 7#a7 ,application of certain non-discrimination rules ,no credit shall be allowed under this section to any employer for any calendar quarter if qualified employee dependent care expenses are provided by such employer to employees for such calendar quarter in a manner which discriminates in favor of highly compensated individuals 7within the meaning of section #abe7 as to eligibility for1 or the amount of1 such benefit expenses4 7#b7 ,denial of double benefit ,for purposes of chapter #a of such ,code1 no deduction or credit 7other than the credit allowed under this section7 shall be allowed for so much of qualified employee dependent care expenses as is equal to the credit allowed under this section4 7#c7 ,third-party payors ,any credit allowed under this section shall be treated as a credit described in section #ceaa7;d77#b7 of such ,code4 7#d7 ,applicable employment taxes ,for purposes of this section1 the term applicable employment taxes means the following3 7,a7 ,the taxes imposed under section #caaa7;a7 of the ,internal ,revenue ,code of #aihf4 7,b7 ,so much of the taxes imposed under section #cbba7;a7 of such ,code as are attributable to the rate in effect under section #caaa7;a7 of such ,code4 7#e7 ,secretary ,for purposes of this section1 the term ,secretary means the ,secretary of the ,treasury or the ,secretary's delegate4 7#f7 ,certain terms 7,a7 ,in general ,any term used in this section which is also used in chapter #ba or #bb of such ,code shall have the same meaning as when used in such chapter 7as the case may be74 7,b7 ,certain provisions not taken into account except for purposes of limiting credit to employment taxes ,for purposes of subparagraph 7,a7 7other than with respect to subsection 7b77#b771 section #caba7;b7 of such ,code shall be applied without regard to paragraphs 7#a71 7#e71 7#f71 7#g71 7#h71 7#aj71 7#ac71 7#ah71 7#ai71 and 7#bb7 thereof 7except with respect to services performed in a penal institution by an inmate thereof7 and section #cbca7;e77#a7 shall be applied without regard to the sentence that begins ,such term does not include remuneration4 7e7 ,certain governmental employers 7#a7 ,in general ,the credit under this section shall not be allowed to the ,federal ,government or any agency or instrumentality thereof4 7#b7 ,exception ,paragraph 7#a7 shall not apply to any organization described in section #eja7;c77#a7 of the ,internal ,revenue ,code of #aihf and exempt from tax under section #eja7;a7 of such ,code4 7f7 ,treatment of deposits ,the ,secretary shall waive any penalty under section #ffef of such ,code for any failure to make a deposit of applicable employment taxes if the ,secretary determines that such failure was due to the anticipation of the credit allowed under this section4 7g7 ,regulations ,the ,secretary shall prescribe such regulations or other guidance as may be necessary to carry out the purposes of this section1 including regulations or other guidance-- 7#a7 to allow the advance payment of the credit determined under subsection 7a71 subject to the limitations provided in this section1 based on such information as the ,secretary shall require1 7#b7 to provide for the reconciliation of such advance payment with the amount of the credit at the time of filing the return of tax for the applicable quarter or taxable year1 7#c7 for recapturing the benefit of credits determined under this section in cases where there is a subsequent adjustment to the credit determined under subsection 7a71 and 7#d7 with respect to the application of the credit to third party payors 7including professional employer organizations1 certified professional employer organizations1 or agents under section #cejd of such ,code71 including to allow such payors to submit documentation necessary to substantiate eligibility for1 and the amount of1 the credit allowed under this section4 7h7 ,application of section ,this section shall apply only to qualified employee dependent care expenses paid in calendar quarters beginning on or after the date of the enactment of this ,act and before ,january #a1 #bjba4 7i7 ,transfers to certain trust funds ,there are hereby appropriated to the ,federal ,old-,age and ,survivors ,insurance ,trust ,fund and the ,federal ,disability ,insurance ,trust ,fund established under section #bja of the ,social ,security ,act 7#db ,u4,s4,c4 #dja7 and the ,social ,security ,equivalent ,benefit ,account established under section #ae;,a7a7 of the ,railroad ,retirement ,act of #aigd 7#de ,u4,s4,c4 #bcan-#a7;a77 amounts equal to the reduction in revenues to the ,treasury by reason of this section 7without regard to this subsection74 ,amounts appropriated by the preceding sentence shall be transferred from the general fund at such times and in such manner as to replicate to the extent possible the transfers which would have occurred to such ,trust ,fund or ,account had this section not been enacted4 #djf4 ,flexibility for dependent care flexible spending arrangements 7a7 ,carryover of unused benefits ,a plan or other arrangement that otherwise satisfies all applicable requirements of sections #ajf1 #abe1 and #abi of the ,internal ,revenue ,code of #aihf 7including any rules or regulations thereunder7 shall not fail to be treated as a cafeteria plan or dependent care flexible spending arrangement merely because such plan or arrangement permits participants to carry over 7under rules similar to the rules applicable to health flexible spending arrangements7 an amount1 not in excess of the amount in effect under section #abi7;a77#b77;,a7 of such ,code1 of unused benefits or contributions remaining in a dependent care flexible spending arrangement from the plan year ending in #bjbj to the plan year ending in #bjba4 7b7 ,extension of grace periods ,a plan or other arrangement that otherwise satisfies all applicable requirements of sections #ajf1 #abe1 or #abi of the ,internal ,revenue ,code 7including any rules or regulations thereunder7 shall not fail to be treated as a cafeteria plan or dependent care flexible spending arrangement merely because such plan or arrangement extends the grace period for the plan year ending in #bjbj to #ab months after the end of such plan year1 with respect to unused benefits or contributions remaining in a dependent care flexible spending arrangement4 7c7 ,definitions ,any term used in this section which is also used in section #ajf1 #abe1 or #abi of the ,internal ,revenue ,code of #aihf or the rules or regulations thereunder shall have the same meaning as when used in such section or rules or regulations4 7d7 ,plan amendments ,a plan or other arrangement that otherwise satisfies all applicable requirements of sections #ajf1 #abe1 and #abi of the ,internal ,revenue ,code of #aihf 7including any rules or regulations thereunder7 shall not fail to be treated as a cafeteria plan or dependent care flexible spending arrangement merely because such plan or arrangement is amended pursuant to a provision under this section and such amendment is retroactive1 if-- 7#a7 such amendment is adopted no later than the last day of the plan year in which the amendment is effective1 and 7#b7 the plan or arrangement is operated consistent with the terms of such amendment during the period beginning on the effective date of the amendment and ending on the date the amendment is adopted4 #djg4 ,employee retention credit allowed with respect to employment of domestic workers 7a7 ,in general ,section #bcja7;c77#b7 of the ,,cares ,act is amended by adding at the end the following new subparagraph3 7,d7 ,employers of domestic workers ,in the case of an employer with one or more employees who perform domestic service 7within the meaning of section #caba7;a77#g7 of such ,code7 in the private home of such employer1 with respect to such employees-- 7i7 subparagraph 7,a7 shall be applied-- 7,i7 by substituting employing an employee who performs domestic service in the private home of such employer for carrying on a trade or business in clause 7i7 thereof1 and 7,,ii7 by substituting such employment for the operation of the trade or business in clause 7ii77,i7 thereof1 7ii7 subclause 7,,ii7 of subparagraph 7,a77ii7 shall not apply1 and 7iii7 such employer shall be treated as a large employer4 4 7b7 ,denial of double benefit ,section #bcja7;h77#b7 of the ,,cares ,act is amended-- 7#a7 by striking shall not be taken into account for purposes of and inserting shall not be taken into account-- 7,a7 for purposes of 1 7#b7 by striking the period at the end and inserting 1 and1 and 7#c7 by adding at the end the following3 7,b7 if such wages are paid for domestic service described in subsection 7c77#b77;,e71 as employment-related expenses for purposes of section #ba of such ,code4 ,in the case of any individual who pays wages for domestic service described in subsection 7c77#b77;,e7 and receives a reimbursement for such wages which is excludible from gross income under section #abi of such ,code1 such wages shall not be treated as qualified wages for purposes of this section4 4 7c7 ,effective date ,the amendments made by this section shall take effect as if included in section #bcja of the ,,cares ,act4 #djh4 ,child care stabilization funds 7a7 ,in general ,section #dah7;a77#c7 of the ,social ,security ,act 7#db ,u4,s4,c4 #fah7;a77#c77 is amended by striking #b1iag1jjj1jjj for each of fiscal years #bjag and #bjah and inserting #aj1jjj1jjj1jjj for each of fiscal years #bjbj through #bjbd4 7b7 ,additional funds not subject to ,state match requirement ,with respect to the amounts appropriated in section #dah7;a77#c7 of the ,social ,security ,act in excess of #b1iag1jjj1jjj for each of fiscal years #bjbj and #bjba1 section #dah7;a77#b77;,c7 of such ,act shall be applied and administered with respect to any ,state that is entitled to receive the entire amount that would be allotted to the ,state under section #dah7;a77#b77;,b7 of such ,act for the fiscal year in the absence of this section1 as if the ,federal medical assistance percentage for the ,state for the fiscal year were #ajj percent4 #dji4 ,family care for essential workers 7a7 ,increase in funding ,the amount specified in subsection 7c7 of section #bjjc of the ,social ,security ,act for purposes of subsections 7a7 and 7b7 of such section is deemed to be #b1eej1jjj1jjj for fiscal year #bjbj1 of which #hej1jjj1jjj shall be obligated by ,states during calendar year #bjbj in accordance with subsection 7b7 of this section4 7b7 ,rules governing use of additional funds 7#a7 ,in general ,funds are used in accordance with this subsection if-- 7,a7 the funds are used for-- 7i7 child care services for a child of an essential worker2 or 7ii7 daytime care services or other adult protective services for an individual who-- 7,i7 is a dependent1 or a member of the household of1 an essential worker2 and 7,,ii7 requires the services2 7,b7 the funds are provided to reimburse an essential worker for the cost of obtaining the services 7including child and adult care services obtained on or after the date the ,secretary of ,health and ,human ,services declared a public health emergency pursuant to section #cai of the ,public ,health ,service ,act on ,january #ca1 #bjbj1 entitled ,determination that a ,public ,health ,emergency ,exists ,nationwide as the ,result of the #bjai ,novel ,coronavirus71 to a provider of child or adult care services1 or to establish a temporary child care facility operated by a ,state or local government2 7,c7 eligibility for the funds or services1 and the amount of funds or services provided1 is not conditioned on a means test2 7,d7 the funds are used in consultation with the lead agency designated pursuant to section #feh;,d7a7 of the ,child ,care and ,development ,block ,grant ,act of #aiij by the ,state involved and subject to the limitations in section #bjje of the ,social ,security ,act1 except that1 for purposes of this subparagraph-- 7i7 paragraphs 7#c71 7#e71 and 7#h7 of section #bjje7;a7 of such ,act shall not apply2 and 7ii7 7,i7 the limitation in section #bjje7;a77#g7 of such ,act shall not apply with respect to any standard which the ,state involved determines would impede the ability of the ,state to provide emergency temporary care to a child1 dependent1 or household member referred to in subparagraph 7,a7 of this paragraph if the emergency temporary care would not endanger the health1 safety1 or development of children who received the care and care would otherwise not be available to support the immediate1 short-term family care needs of essential workers2 and 7,,ii7 if the ,state determines that such a standard would be so impeding1 the ,state shall report the determination to the ,secretary1 including a description of how exempting standards that may impede the ability of the ,state to provide emergency temporary care did not endanger the health1 safety1 or development of children who received emergency temporary care1 separately from the annual report to the ,secretary by the ,state2 7,e7 the funds are used to supplement1 not supplant1 ,state general revenue funds for child care assistance2 and 7,f7 the funds are not used for child care costs that are-- 7i7 covered by funds provided under the ,head ,start ,act1 a preschool development grant under section #iaba of the ,every ,student ,succeeds ,act 7#db ,u4,s4,c4 #ihca note71 the ,child ,care and ,development ,block ,grant ,act of #aiij1 section #dah of the ,social ,security ,act1 or another federally funded dependent care program2 or 7ii7 reimbursable by the ,federal ,emergency ,management ,agency4 7#b7 ,essential worker defined ,in paragraph 7#a71 the term essential worker means-- 7,a7 a health sector employee2 7,b7 an emergency response worker2 7,c7 a child care worker2 7,d7 a sanitation worker2 7,e7 a worker at a business which a ,state or local government official has determined must remain open to serve the public during the emergency referred to in paragraph 7#a77;,b72 and 7,f7 any other worker who cannot telework1 and whom the ,state deems to be essential during the emergency referred to in paragraph 7#a77;,b74 #daj4 ,infrastructure grants to improve child care safety 7a7 ,in general ,part ,a of title ,,iv of the ,social ,security ,act 7#db ,u4,s4,c4 #fja et seq47 is amended by inserting after section #dah the following3 #dah;,a4 ,infrastructure grants to improve child care safety 7a7 ,short title ,this section may be cited as the ,infrastructure ,grants ,to ,improve ,child ,care ,safety ,act of #bjbj4 7b7 ,needs ,assessments 7#a7 ,immediate needs assessment 7,a7 ,in general ,the ,secretary shall conduct an immediate needs assessment of the condition of child care facilities throughout the ,united ,states 7with priority given to child care facilities that receive ,federal funds71 that-- 7i7 determines the extent to which the ,,covid-#ai pandemic has created immediate infrastructure needs1 including infrastructure-related health and safety needs1 which must be addressed for child care facilities to operate in compliance with public health guidelines2 7ii7 considers the effects of the pandemic on a variety of child care centers1 including home-based centers2 and 7iii7 considers how the pandemic has impacted specific metrics1 such as-- 7,i7 capacity2 7,,ii7 investments in infrastructure changes2 7,,iii7 the types of infrastructure changes centers need to implement and their associated costs2 7,,iv7 the price of tuition2 and 7,v7 any changes or anticipated changes in the number and demographic of children attending4 7,b7 ,timing ,the immediate needs assessment should occur simultaneously with the first grant-making cycle under subsection 7c74 7,c7 ,report ,not later than #a year after the date of the enactment of this section1 the ,secretary shall submit to the ,congress a report containing the result of the needs assessment conducted under subparagraph 7,a71 and make the assessment publicly available4 7#b7 ,long-term needs assessment 7,a7 ,in general ,the ,secretary shall conduct a long-term assessment of the condition of child care facilities throughout the ,united ,states 7with priority given to child care facilities that receive ,federal funds74 ,the assessment may be conducted through representative random sampling4 7,b7 ,report ,not later than #d years after the date of the enactment of this section1 the ,secretary shall submit to the ,congress a report containing the results of the needs assessment conducted under subparagraph 7,a71 and make the assessment publicly available4 7c7 ,child care facilities grants 7#a7 ,grants to ,states 7,a7 ,in general ,the ,secretary may award grants to ,states for the purpose of acquiring1 constructing1 renovating1 or improving child care facilities1 including adapting1 reconfiguring1 or expanding facilities to respond to the ,,covid-#ai pandemic4 7,b7 ,prioritized facilities ,the ,secretary may not award a grant to a ,state under subparagraph 7,a7 unless the ,state involved agrees1 with respect to the use of grant funds1 to prioritize-- 7i7 child care facilities primarily serving low-income populations2 7ii7 child care facilities primarily serving children who have not attained the age of #e years2 7iii7 child care facilities that closed during the ,,covid-#ai pandemic and are unable to open without making modifications to the facility that would otherwise be required to ensure the health and safety of children and staff2 and 7iv7 child care facilities that serve the children of parents classified as essential workers during the ,,covid-#ai pandemic4 7,c7 ,duration of grants ,a grant under this subsection shall be awarded for a period of not more than #e years4 7,d7 ,application ,to seek a grant under this subsection1 a ,state shall submit to the ,secretary an application at such time1 in such manner1 and containing such information as the ,secretary may require1 which information shall-- 7i7 be disaggregated as the ,secretary may require2 and 7ii7 include a plan to use a portion of the grant funds to report back to the ,secretary on the impact of using the grant funds to improve child care facilities4 7,e7 ,priority ,in selecting ,states for grants under this subsection1 the ,secretary shall prioritize ,states that-- 7i7 plan to improve center-based and home-based child care programs1 which may include a combination of child care and early ,head ,start or ,head ,start programs2 7ii7 aim to meet specific needs across urban1 suburban1 or rural areas as determined by the ,state2 and 7iii7 show evidence of collaboration with-- 7,i7 local government officials2 7,,ii7 other ,state agencies2 7,,iii7 nongovernmental organizations1 such as-- 7aa7 organizations within the philanthropic community2 7bb7 certified community development financial institutions as defined in section #ajc of the ,community ,development ,banking and ,financial ,institutions ,act of #aiid 7#ab ,u4,s4,c4 #dgjb7 that have been certified by the ,community ,development ,financial ,institutions ,fund 7#ab ,u4,s4,c4 #dgjc72 and 7cc7 organizations that have demonstrated experience in-- 7,,aa7 providing technical or financial assistance for the acquisition1 construction1 renovation1 or improvement of child care facilities2 7,,bb7 providing technical1 financial1 or managerial assistance to child care providers2 and 7,,cc7 securing private sources of capital financing for child care facilities or other low-income community development projects2 and 7,,iv7 local community organizations1 such as-- 7aa7 child care providers2 7bb7 community care agencies2 7cc7 resource and referral agencies2 and 7dd7 unions4 7,f7 ,consideration ,in selecting ,states for grants under this subsection1 the ,secretary shall consider-- 7i7 whether the applicant-- 7,i7 has or is developing a plan to address child care facility needs2 and 7,,ii7 demonstrates the capacity to execute such a plan2 and 7ii7 after the date the report required by subsection 7b77#a77;,c7 is submitted to the ,congress1 the needs of the applicants based on the results of the assessment4 7,g7 ,diversity of awards ,in awarding grants under this section1 the ,secretary shall give equal consideration to ,states with varying capacities under subparagraph 7,f74 7,h7 ,matching requirement 7i7 ,in general ,as a condition for the receipt of a grant under subparagraph 7,a71 a ,state that is not an ,indian tribe shall agree to make available 7directly or through donations from public or private entities7 contributions with respect to the cost of the activities to be carried out pursuant to subparagraph 7,a71 which may be provided in cash or in kind1 in an amount equal to #aj percent of the funds provided through the grant4 7ii7 ,determination of amount contributed ,contributions required by clause 7i7 may include-- 7,i7 amounts provided by the ,federal ,government1 or services assisted or subsidized to any significant extent by the ,federal ,government2 or 7,,ii7 philanthropic or private-sector funds4 7,i7 ,report ,not later than #f months after the last day of the grant period1 a ,state receiving a grant under this paragraph shall submit a report to the ,secretary as described in subparagraph 7,d7-- 7i7 to determine the effects of the grant in constructing1 renovating1 or improving child care facilities1 including any changes in response to the ,,covid-#ai pandemic and any effects on access to and quality of child care2 and 7ii7 to provide such other information as the ,secretary may require4 7,j7 ,amount limit ,the annual amount of a grant under this paragraph may not exceed #ce1jjj1jjj4 7#b7 ,grants to intermediary organizations 7,a7 ,in general ,the ,secretary may award grants to intermediary organizations1 such as certified community development financial institutions1 tribal organizations1 or other organizations with demonstrated experience in child care facilities financing1 for the purpose of providing technical assistance1 capacity building1 and financial products to develop or finance child care facilities4 7,b7 ,application ,a grant under this paragraph may be made only to intermediary organizations that submit to the ,secretary an application at such time1 in such manner1 and containing such information as the ,secretary may require4 7,c7 ,priority ,in selecting intermediary organizations for grants under this subsection1 the ,secretary shall prioritize intermediary organizations that-- 7i7 demonstrate experience in child care facility financing or related community facility financing2 7ii7 demonstrate the capacity to assist ,states and local governments in developing child care facilities and programs2 7iii7 demonstrate the ability to leverage grant funding to support financing tools to build the capacity of child care providers1 such as through credit enhancements2 7iv7 propose to meet a diversity of needs across ,states and across urban1 suburban1 and rural areas at varying types of center-based1 home-based1 and other child care settings1 including early care programs located in freestanding buildings or in mixed-use properties2 and 7v7 propose to focus on child care facilities primarily serving low-income populations and children who have not attained the age of #e years4 7,d7 ,amount limit ,the amount of a grant under this paragraph may not exceed #aj1jjj1jjj4 7#c7 ,report ,not later than the end of fiscal year #bjbd1 the ,secretary shall submit to the ,congress a report on the effects of the grants provided under this subsection1 and make the report publically accessible4 7d7 ,limitations on authorization of appropriations 7#a7 ,in general ,to carry out this section1 there is authorized to be appropriated #aj1jjj1jjj1jjj for fiscal year #bjbj1 which shall remain available through fiscal year #bjbd4 7#b7 ,reservations of funds 7,a7 ,indian tribes ,the ,secretary shall reserve #c percent of the total amount made available to carry out this section1 for payments to ,indian tribes4 7,b7 ,territories ,the ,secretary shall reserve #c percent of the total amount made available to carry out this section1 for payments to territories4 7#c7 ,grants for intermediary organizations ,not less than #aj percent and not more than #ae percent of the total amount made available to carry out this section may be used to carry out subsection 7c77#b74 7#d7 ,limitation on use of funds for needs assessments ,not more than #e1jjj1jjj of the amounts made available to carry out this section may be used to carry out subsection 7b74 7e7 ,definition of ,state ,in this section1 the term ,state has the meaning provided in section #dai1 except that it includes the ,commonwealth of the ,northern ,mariana ,islands and any ,indian tribe4 4 7b7 ,exemption of territory grants from limitation on total payments to the territories ,section #aajh7;a77#b7 of such ,act 7#db ,u4,s4,c4 #acjh7;a77#b77 is amended by inserting #dah;,a7c71 after #dac7;f714