This legislative proposal introduces a new Child Care Supply Credit under the Internal Revenue Code, designed to encourage employers to increase wages for child care providers. The credit allows employers to claim a percentage of the qualified child care wages they pay or incur during a taxable year, aiming to bolster the child care workforce by making these positions more financially attractive. The standard credit amount is 5% of qualified wages, but it increases to 7% for eligible child care facilities located in rural areas . To qualify, a facility must provide child care services for at least six individuals, receive payment for these services, and comply with all applicable state and local regulations. A qualified child care worker is defined as an employee at such a facility who directly provides child care services. The new credit is integrated into the existing general business credit framework and includes provisions for elective payment , allowing eligible entities to receive the credit as a direct payment rather than solely as a tax reduction.