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Enhanced Child and Dependent Care Tax Credits for Families and Employers

This act aims to make child and dependent care more affordable by changing tax rules. Businesses will receive larger tax credits for providing care to their employees, and families can deduct more care-related expenses. These changes are designed to lower care costs and support parental employment.
Key points
Businesses can deduct more costs for providing child care to employees, potentially encouraging more employer-sponsored care facilities.
The maximum tax credit for employer-provided child care increases from $150,000 to $500,000 (up to $600,000 for small businesses).
Families can exclude up to $7,500 (formerly $5,000) from dependent care assistance programs, reducing their taxable income.
A new, refundable tax credit for household and dependent care expenses is introduced, meaning even low-income individuals can receive a refund.
The maximum amount of care expenses that can be claimed under the new credit is $5,000 for one qualifying individual and $8,000 for two or more.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_1827
Sponsor: Rep. Carbajal, Salud O. [D-CA-24]
Process start date: 2025-03-04
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Summarized by: gemini-2.5-flash
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Child Care Availability and Affordability Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_1827.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2025-03-04.

What are the main provisions?

Key points include:

  • Businesses can deduct more costs for providing child care to employees, potentially encouraging more employer-sponsored care facilities.
  • The maximum tax credit for employer-provided child care increases from $150,000 to $500,000 (up to $600,000 for small businesses).
  • Families can exclude up to $7,500 (formerly $5,000) from dependent care assistance programs, reducing their taxable income.
  • A new, refundable tax credit for household and dependent care expenses is introduced, meaning even low-income individuals can receive a refund.
  • The maximum amount of care expenses that can be claimed under the new credit is $5,000 for one qualifying individual and $8,000 for two or more.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Carbajal, Salud O. [D-CA-24].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-22.

CATEGORIES

Taxes Family Labor