Choices in Child Care Act of 1988

Choices in Child Care Act of 1988 - Title I: Supplemental Child Care Assistance for Low-Income Working Parents - Authorizes the Secretary of Health and Human Services to make grants to the States to provide certificates to eligible individuals for child care services. Sets out eligibility criteria, including a requirement that a State submit a plan detailing its program for child care services for low-income children under 14 to enable family members to work or to participate in employment training programs. Prescribes the process for review of applications, reimbursement procedures, and reporting requirements in connection with the program. Authorizes appropriations.

Title II: Block Grants to States for Activities Relating to Dependent Care Services - Amends the State Dependent Care Development Grants Act to increase the FY 1989 amount authorized for grants to States for dependent care services and to authorize FY 1990 through 1993 appropriations.

Restructures the block grants program for dependent care services, enumerating a wide range of permissible uses for allotments paid to States under the program. Includes such activities as loans to establish child care services to school-age children before or after school, training programs for child care providers, scholarships to low-income individuals for child care training, activities designed to make liability insurance more available and affordable for care providers, and projects to meet the care needs of special populations.

Decreases the permissible Federal share of the cost of projects under the program. Revises reporting requirements in connection with the program to require State reporting. Applies nondiscrimination provisions to the program, but permits the refusal of a fund recipient to provide services to a child on the basis of handicap under limited circumstances when other care is reasonably available.

Title III: Tax Credit for Families with Young Children - Amends the Internal Revenue Code to allow an individual a refundable income tax credit for each dependent under age six who resides in the household. Sets a maximum credit of $100 per qualified dependent child. Reduces the credit for taxpayers whose adjusted gross income exceeds $20,000. Disallows the credit with respect to a dependent claimed under the dependent care income tax credit. Directs the Secretary of the Treasury to prescribe tables to be used to determine the credit amount.

Provides for advance credit payments by employers to employees who provide certification of eligibility. Requires taxpayers to file information returns to reflect such payments.

Revises the dependent care credit to: (1) disqualify children six years old or older from credit determinations (current law permits the credit with respect to dependents up to age 15); and (2) disallow the credit to taxpayers whose adjusted gross income exceeds $30,000.

Permits businesses a ten percent investment tax credit in connection with certain depreciable property used as part of a child care facility operated by the employer on or near the work site for the care of enrollees, at least 30 percent of whom must be dependents of the employer's employees. Provides for recapture of the credit amount if the facility ceases to be a qualified child care property. Limits to $200,000 the annual qualified investment subject to the credit.

Sets reduced self-employment tax rates in connection with income earned from child care services in either a family-based (at the home of the taxpayer) or in-home (at the home of the recipient child) child care facility. Amends the Social Security Act to reflect this provision.

Excludes income earned from child care services from wage withholding requirements and from the surtax imposed for failure to pay estimated income tax.

Title IV: Miscellaneous - Directs the Secretary of Labor to study and report to specified congressional committees concerning barriers to employer provision of child care services for their employees.

Repeals the Child Development Associate Scholarship Assistance Act of 1985 (a grant program providing scholarships to low-income candidates for the Child Development Associate credential).