Increased Tax Credits for Child Care and Support for Early Education Workers.
This Act aims to reduce child care costs for families by significantly increasing tax credit limits for dependent care expenses. It introduces new, three-year tax credits for individuals working in licensed child care facilities who hold relevant degrees, encouraging workforce participation in this sector. Furthermore, businesses receive much larger financial incentives to establish and operate on-site child care facilities for their employees.
Key points
Increased Employer Credits: The maximum tax credit for businesses establishing workplace child care facilities increases from $150,000 to $500,000 (up to $600,000 for small businesses).
Higher Income Exclusion: The limit for employer-provided dependent care assistance that is excluded from an employee's income increases from $5,000 to $10,000, plus $2,000 for each qualifying dependent.
Credit for Child Care Providers: A new three-year tax credit ($2,500 or $4,000 annually) is introduced for individuals with an early childhood education or related degree who work at least 1,200 hours per year in a licensed child care facility.
Expired
Citizen Poll