Child Care Act of 1987

Child Care Act of 1987 - Sets forth congressional findings regarding the child care policies of the country.

Title I: Voucher System for Child Care - Directs the Secretary of Health and Human Services to make grants to each State which has an approved plan for making vouchers for child care available to individuals whose family income is less than 200 percent of the Federal proverty level and who require such services due to their employment, search for employment, or training for employment. Authorizes appropriations for FY 1988 through 1991.

Requires child care providers which are not required by State law to be licensed or certified to register with the State in order to participate in the voucher program. Directs States to make voluntary certification available to child care providers not required to be licensed or certified under State law. Exempts family day care providers (child care providers caring for six or fewer children) which are not required by State law to be licensed or certified from registration requirements if the State demonstrates to the Secretary that not less than 80 percent of the children served by such providers are likely to be served by family day care providers whose names and addresses are recorded by the State. Requires the Secretary to establish criteria, standards, and a timetable for the implementation of these and other specified State voucher plan requirements.

Directs the Secretary to reimburse a State for 75 percent of its costs under such plan. Provides for proportional allotments among States based upon the amount each State receives under title XX (Grants to States for Social Services) of the Social Security Act. Permits a State to use title XX funds for the voucher plan. Permits the Secretary to withhold this Act's grant payments from a noncompliant State.

Excludes the amount of any voucher from determinations of income or resources for purposes of any Federal or State law.

Requires each State to report biennially to the Secretary on the implementation of the plan, including the amounts used on vouchers from title XX funds. Requires the Secretary to submit an analysis of the State reports to the Congress.

Title II: Changes in Dependent Care Tax Credit - Amends the Internal Revenue Code to provide for proportionately greater reductions in the dependent care tax credit when a taxpayer's income exceeds $60,000 than when his or her income exceeds $10,000, except where such credit is for care provided to a handicapped individual. Adjusts such dollar figures annually to reflect changes in the cost-of-living.

Disallows dependent care tax credits for care paid for with vouchers.