To amend the Internal Revenue Code of 1986 to increase the amount allowed as a credit under the expenses for household and dependent care services credit and the employer-provided child care credit.

Key Points

• The bill doubles the child and dependent care tax credit limits for families. The maximum qualifying expense would rise from $3,000 to $6,000 for one dependent and from $6,000 to $12,000 for two or more dependents. This means families could claim a bigger tax break for child care, elder care, or caring for a disabled relative.
• The bill also boosts the employer-provided child care credit, raising the cap from $150,000 to $400,000. This gives businesses a much larger tax incentive to set up or expand child care programs for their workers.
• Both changes would take effect for tax years starting after the bill becomes law. That means families and employers would first see the benefit when they file taxes for the first full year after enactment.
• The bill was introduced by Rep. Mackenzie and referred to the House Ways and Means Committee. It still has a long road ahead before it could become law, as it needs to clear committee, pass both chambers of Congress, and be signed by the president.

Votes

No votes have been recorded for this legislation yet.

Related Bills

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