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Doubling Tax Benefits for Child and Dependent Care

This act aims to double tax benefits related to child and dependent care. This means families will be able to deduct larger amounts from their taxes for care expenses, potentially leading to significant savings. These changes will take effect starting from the 2025 tax year.
Key points
The maximum child and dependent care tax credit will increase from $3,000 to $6,000 for one individual and from $6,000 to $12,000 for two or more individuals.
The limit for employer-provided dependent care assistance programs will increase from $5,000 to $10,000 annually.
The maximum tax credit for employers providing child care facilities will increase from $150,000 to $300,000.
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Introduced
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Additional Information
Print number: 119_HR_1408
Sponsor: Rep. Davids, Sharice [D-KS-3]
Process start date: 2025-02-18