Small Business Dependent Care FSA Opportunity Act
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.
This bill, HB7922, aims to amend the Internal Revenue Code to offer a credit to small businesses for initiating dependent care flexible spending plans (FSAs). These plans allow employees to set aside pre-tax dollars to cover dependent care expenses, such as childcare or elder care. The credit would specifically benefit small employers by reducing their initial costs to start these plans.
The bill targets small businesses, which often face financial challenges in setting up such benefits for their employees. By providing a credit, it aims to encourage more small businesses to offer dependent care FSAs, thereby improving employee benefits and work-life balance for those who need childcare or elder care support.
As of March 12, 2026, HB7922 has been introduced in the House and referred to the House Committee on Ways and Means. This is the first step in the legislative process, where the bill will be reviewed and potentially marked up before moving forward for a vote.
