We should encourage businesses to use the non-refundable tax credits already available to them—like the 45F tax credit—by making it refundable if businesses build and operate discounted childcare for employees.
Make the federal 45F childcare tax credit refundable for businesses that build and operate discounted childcare for employees.
Occurrences
Incentivize Businesses To Provide Discounted Childcare For Employees
Evidence
The campaign affordability agenda says businesses should be encouraged to use the existing 45F child care tax credit by making it refundable if they build and operate discounted child care for employees.
IRS guidance states the employer-provided child care credit is a business credit under section 45F, not a refundable credit, and describes it as a credit that reduces tax liability.
Assessments
The promised outcome was specifically to make IRC section 45F refundable for businesses that build and operate discounted employee childcare. Current federal treatment still describes 45F as nonrefundable: it can reduce business tax liability, with unused amounts generally carried back or forward rather than paid as a refund. Although later federal legislation changed some 45F parameters for 2026, including higher caps/rates and expanded eligible expenses, the evidence does not show that Schiff enacted or materially advanced refundability, nor that refundability became law. The promise therefore has not been delivered.