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People & committees
Rep. Crank, Jeff [R-CO-5] · R–CO
Legislative record
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Referred to the House Committee on Ways and Means.
Introduced in House
Introduced in House
Primary sources
Text links open the official source. We also preserved the text version used in the PlainBill explanation below.
No related bills are listed in this snapshot. This does not establish whether the proposal has appeared in earlier Congresses.
Source last updated: Oct 14, 2026. Consult Congress.gov for the current record.
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PlainBill explanation
Based on the full Introduced in House · 2026-10-01 text. This explanation has not received human editorial review. This overview describes the proposal’s major provisions; it does not establish what its real-world effects would be.
The proposed SPROUT Act would let taxpayers elect to deduct the full adjusted tax basis of qualifying building space used for state-licensed child care for children under five in the year it begins service. Adjusted basis is the property's value used to calculate tax deductions. The proposal includes eligibility for unlicensed taxpayers with qualifying contracts with licensed providers. Generally, eligible property would have to begin service after enactment and before December 31, 2031.
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.
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
(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
(G) which is placed in service before December 31, 2031.
The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.
For taxpayers who elect the proposed allowance, the first-year depreciation deduction—a deduction for property costs—would include 100 percent of the qualifying property's adjusted basis. That basis would then be reduced by the deduction before calculating other depreciation for that year or later years.
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.
Eligibility would cover the qualifying portion of nonresidential real property subject to section 168 and used by the taxpayer as part of a state-licensed center caring for children under five. An unlicensed taxpayer would need a binding written contract with a state-licensed care provider before construction begins.
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
The property would have to begin service in the United States or a U.S. possession, be designated in the taxpayer's election, and have its original use begin with that taxpayer.
(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
The proposal would exclude nonresidential property that is not part of a building where child care is provided. Despite the heading's reference to office space, the operative language does not expressly exclude every office located inside such a building.
(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.
The proposed amendments would apply to property beginning service after enactment. The ordinary eligibility deadline would require service to begin before December 31, 2031.
(G) which is placed in service before December 31, 2031.
(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.
The Secretary could extend the service deadline if an “act of God,” as defined in a referenced environmental law, prevents timely service. The provision also requires satisfaction of other eligibility conditions, but its reference to those conditions is defective, leaving uncertainty about its operation.
(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.
(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.
Rules similar to four existing paragraphs of section 168(n) would apply, but those paragraphs are not reproduced in the bundle. The Secretary would be required to issue regulations or other guidance as necessary or appropriate to implement the allowance.
(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.
The bill would add qualified early childhood education centers to the property categories in section 1245(a)(3). The supplied text does not reproduce the existing rules needed to explain the full tax consequences of that classification.
(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)) .
The supplied October 14, 2026 source snapshot records introduction in the House and referral to the House Committee on Ways and Means on October 1, 2026.
Source snapshot updated 2026-10-14T19:42:15Z. 2026-10-01: Referred to the House Committee on Ways and Means. 2026-10-01: Introduced in House
A closer look
Reviewed version: Introduced in House · 2026-10-01. These findings describe provisions and who may benefit; they are not judgments of waste, corruption, or motive.
This review covers the supplied bill text. “None identified” does not rule out provisions in later versions or accompanying reports and disclosures.
Provisions outside the bill’s main subject, or policy changes attached to appropriations.
None identified in the reviewed text
No unrelated provision was identified in the complete supplied introduced text. This conclusion is limited to that version and does not establish attachment history or the contents of other versions or accompanying materials.
Spending directed to particular recipients or places outside ordinary competitive or formula-based allocation.
None identified in the reviewed text
No congressionally directed spending earmark was identified in the complete supplied introduced text. This conclusion is limited to that version; member disclosures and committee or conference materials were not supplied.
Narrow exceptions, exemptions, or preferential treatment that warrant a closer look.
None identified in the reviewed text
No separate narrow carve-out or preferential exception warranting a finding was identified in the complete supplied introduced text. The main tax benefit's intended beneficiaries and ordinary eligibility conditions alone are not treated as additional targeted benefits. This conclusion is limited to the supplied version.
Full text preserved for this analysis. Legislative record snapshot: Oct 14, 2026. How PlainBill uses AI