SPROUT Act of 2026

This bill would change federal tax law so that businesses can choose to deduct the full cost of a qualifying early childhood education building in the year it is first put into use, instead of spreading the deduction over many years. To qualify, the property must be nonresidential real property used as part of a center licensed by a state to care for children under age 5, and it must be placed in service before December 31, 2031. Owners who are not licensed themselves must have a written contract with a licensed provider before construction begins. Office space or other property outside a building where child care is provided would not qualify. The Treasury Secretary could extend the deadline if an act of God prevents a property from being finished in time.

Full text and official record on Congress.gov

Sponsors

• Jeff Crank Republican sponsor
• 0 cosponsors