qualified child care expenditure
(1) Qualified child care expenditure (A) In general The term “qualified child care expenditure” means any amount paid or incurred— (i) to acquire, construct, rehabilitate, or expand property— (I) which is to be used as part of a qualified child care facility of the taxpayer, (II) with respect to which a deduction for depreciation (or amortization in lieu of depreciation) is allowable, and (III) which does not constitute part of the principal residence (within the meaning of section 121) of the taxpayer or any employee of the taxpayer, (ii) for the operating costs of a qualified child care facility of the taxpayer, including costs related to the training of employees, to scholarship programs, and to the providing of increased compensation to employees with higher levels of child care training, or (iii) under a contract with a qualified child care facility to provide child care services to employees of the taxpayer. (B) Fair market value The term “qualified child care expenditures” shall not include expenses in excess of the fair market value of such care.