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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10657 Introduced in House (IH)]
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119th CONGRESS
2d Session
H. R. 10657
To amend the Internal Revenue Code of 1986 to allow a special
depreciation allowance for qualified early childhood education centers.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 1, 2026
Mr. Crank 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 allow a special
depreciation allowance for qualified early childhood education centers.
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 ``Supporting Early Childhood Education
Opportunities through Upfront Tax Deductions Act of 2026'' or the
``SPROUT Act of 2026''.
SEC. 2. SPECIAL DEPRECIATION ALLOWANCE FOR QUALIFIED EARLY CHILDHOOD
EDUCATION CENTERS.
(a) In General.--Section 168 of the Internal Revenue Code of 1986
is amended by adding at the end the following new subsection:
``(o) Special Allowance for Qualified Early Childhood Education
Centers.--
``(1) In general.--In the case of any qualified early
childhood education center of a taxpayer making an election
under this section--
``(A) the depreciation deduction provided by
section 167(a) for the taxable year in which such
property is placed in service shall include an
allowance equal to 100 percent of the adjusted basis of
the qualified early childhood education center, and
``(B) the adjusted basis of the qualified early
childhood education center shall be reduced by the
amount of such deduction before computing the amount
otherwise allowable as a depreciation deduction under
this chapter for such taxable year and any subsequent
taxable year.
``(2) Qualified early childhood education center.--For
purposes of this subsection, the term `qualified early
childhood education center' means that portion of any
nonresidential real property--
``(A) to which this section applies,
``(B) which is used by the taxpayer as part of an
early childhood education center which is licensed by
any State to provide care for children under the age of
5,
``(C) in the case of a taxpayer that is not
licensed to provide such care, with respect to which
such taxpayer is party to a written binding contract
with a person licensed by any State to provide care at
such early childhood education center before
construction of such property begins,
``(D) which is placed in service in the United
States or any possession thereof,
``(E) which is designated by the taxpayer in the
election made under this section,
``(F) the original use of which commences with the
taxpayer, and
``(G) which is placed in service before December
31, 2031.
``(3) Exclusion of office space, etc.--The term `qualified
early education center' shall not include any nonresidential
real property which is not a part of a building in which child
care is provided.
``(4) Extension of placed in service date under certain
circumstances.--The Secretary may extend the date under
paragraph (2)(G) with respect to any property that meets the
requirements of subparagraphs (A) through (F) of paragraph (1)
if the Secretary determines that an act of God (as defined in
section 101(1) of the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980) prevents the taxpayer
from placing such property in service before such date.
``(5) Special rules.--Rules similar to the rules of
paragraphs (3), (4), (5), and (6) of subsection (n) shall apply
to this subsection.
``(6) Regulations.--The Secretary shall issue such
regulations or other guidance as may be necessary or
appropriate to carry out the purposes of this subsection,
including regulations or other guidance.''.
(b) Treatment of Qualified Early Childhood Education Center as
Section 1245 Property.--Section 1245(a)(3) is amended--
(1) in subparagraph (F), by striking ``or'',
(2) in subparagraph (G), by striking the period and
inserting ``, or'', and
(3) by adding at the end the following new subparagraph:
``(H) any qualified early childhood education
center (as defined in section 168(o)(2))''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of the enactment of
this Act.
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