H.R. 10657
SPROUT Act of 2026
Summary:
• The SPROUT Act of 2026 amends the Internal Revenue Code to allow a 100% special depreciation deduction on the adjusted basis of qualified early childhood education centers in the year the property is placed in service.
• A "qualified early childhood education center" is defined as a portion of nonresidential real property used by a taxpayer as part of a State-licensed early childhood education center providing care for children under age 5, placed in service before December 31, 2031.
• Taxpayers must make an election to claim this allowance, and the deduction applies only to property whose original use commences with the taxpayer.
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• A "qualified early childhood education center" is defined as a portion of nonresidential real property used by a taxpayer as part of a State-licensed early childhood education center providing care for children under age 5, placed in service before December 31, 2031.
• Taxpayers must make an election to claim this allowance, and the deduction applies only to property whose original use commences with the taxpayer.
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