Taxpayers could deduct qualifying child care building costs upfront

Taxpayers could elect to deduct 100% of qualifying building space's adjusted basis, or tax value, in its first year of use. Covered space must be in a building in the United States or its possessions where a state-licensed center cares for children under 5. Original use must begin with the taxpayer. Unlicensed taxpayers need a binding contract with a licensed provider before construction. The deduction would lower the property's basis used to calculate any remaining depreciation. This would cover property put into use after enactment and before December 31, 2031. Treasury could extend the end date if a federally defined “act of God” prevents timely use.