To amend the Internal Revenue Code of 1986 to provide a credit to certain small employers for the startup costs of dependent care flexible spending plans.

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 7922 Introduced in House (IH)] <DOC> 119th CONGRESS 2d Session H. R. 7922 To amend the Internal Revenue Code of 1986 to provide a credit to certain small employers for the startup costs of dependent care flexible spending plans. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES March 12, 2026 Mr. Smith of Nebraska (for himself, Mr. Davis of Illinois, and Mr. Moran) introduced the following bill; which was referred to the Committee on Ways and Means _______________________________________________________________________ A BILL To amend the Internal Revenue Code of 1986 to provide a credit to certain small employers for the startup costs of dependent care flexible spending plans. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Small Business Dependent Care FSA Opportunity Act''. SEC. 2. SMALL EMPLOYER DEPENDENT CARE FLEXIBLE SPENDING PLAN STARTUP COSTS. (a) In General.--Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: ``SEC. 45BB. SMALL EMPLOYER DEPENDENT CARE FLEXIBLE SPENDING PLAN STARTUP COSTS. ``(a) In General.--For purposes of section 38, in the case of an eligible employer, the small employer dependent care flexible spending plan startup cost credit determined under this section for any taxable year is an amount equal to the qualified startup costs paid or incurred by the taxpayer during the taxable year. ``(b) Dollar Limitation.--The amount of the credit determined under this section for any taxable year shall not exceed-- ``(1) for the first credit year and each of the 2 taxable years immediately following the first credit year, the greater of-- ``(A) $500, or ``(B) the lesser of-- ``(i) $250 for each employe