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Congress·In Committee·H.R. 1296

Expanding Child Care Access Act of 2025

Child Care: Tax Credits for New Home-Based Providers

This bill was recently introduced and is currently being reviewed by the House Committee on Ways and Means. It is in the early stages of the lawmaking process and is considered active. There are no upcoming votes scheduled at this time.

Passage Likelihood

30%Unlikely

The bill has many supporters but faces a difficult path in a divided Congress where tax changes often require broad bipartisan deals to move forward.

  • ·Large group of cosponsors
  • ·Referred to House Ways and Means Committee
  • ·Focuses on small business growth
  • ·Part of a larger debate on child care costs

Legislative Progress

House
Senate
President
Law

Key Points

  • This bill would create a new tax credit of up to $5,000 to help people start child care businesses in their own homes. Because the credit is refundable, business owners could receive the money as a refund even if they do not owe any federal income tax.
  • To qualify for the money, a person must run a licensed child care program out of their main home and care for at least two children who are not their own. This ensures the money goes to people who are providing professional services to their community.
  • The credit covers many expensive startup costs like licensing fees, liability insurance, and professional training. It also pays for supplies like diapers, toys, and food, as well as home repairs or playground equipment needed to meet safety laws.
  • This plan aims to fix the child care shortage by making it cheaper for individuals to open small centers in their neighborhoods. Many parents currently face long waitlists and high costs for daycare, and this could create more local options.
  • A person can only claim this tax credit one time. If the bill passes, the program would stay in place for seven years before Congress would need to decide whether to keep it going.

Milestones

2 milestones2 actions
Feb 13, 2025House

Referred to the House Committee on Ways and Means.

Feb 13, 2025

Introduced in House

The bill was officially filed and given a number. It now enters the legislative queue.

Source Information

Document Type

Congressional Bill

Official Title

Expanding Child Care Access Act of 2025

Bill NumberHR 1296
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred to the House Committee on Ways and Means.

Sponsor

Cosponsors

(39)
D: 39

Analysis generated by AI. Always verify with official sources.