Expanding Child Care Access Act of 2025

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.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.