This bill introduces the Child Care Supply Credit into the Internal Revenue Code, aiming to incentivize employers to increase wages for child care providers. It provides a tax credit to eligible employers based on the increase in qualified child care wages paid compared to the preceding taxable year. To qualify, an employer's average hourly child care wage for the current year must exceed that of the prior year, ensuring the credit directly supports wage growth. The credit amount is calculated as the lesser of the applicable percentage of qualified wages or the actual increase in those wages. Generally, the credit is 5% of qualified wages, but it increases to 7% for eligible child care facilities located in rural areas . This provision seeks to address the specific challenges faced by child care providers in less populated regions. The bill defines qualified child care workers as employees providing child care services at facilities that serve at least six children, receive payment, and comply with all applicable state and local regulations. This credit is integrated into the general business credit and allows for elective payment , providing flexibility for eligible taxpayers. It also includes provisions to prevent double benefits from other tax credits.