H.R. 1408

119th CONGRESS 1st Session

To amend the Internal Revenue Code of 1986 to double the value of certain tax benefits relating to children and dependents.

IN THE HOUSE OF REPRESENTATIVES · February 18, 2025 · Sponsor: Ms. Davids of Kansas · Committee: Committee on Ways and Means

Table of contents

• H.R. 1408
  • SEC. 1. Short title
  • SEC. 2. Child and dependent care credit doubled
  • SEC. 3. Dependent care assistance program limit doubled
  • SEC. 4. Employer-provided childcare credit doubled

SEC. 1. Short title

• This Act may be cited as the Affordable Child Care Act.

SEC. 2. Child and dependent care credit doubled

• (a) In general
  • of the Internal Revenue Code of 1986 is amended— Section 21(c)
    • in paragraph (1), by striking $3,000and inserting $6,000, and
    • in paragraph (2), by striking $6,000and inserting inserting2,000.
• (b) Conforming amendment
  • Section 21 of such Code is amended by striking subsection (g) and redesignating subsection (h) as subsection (g).
• (c) Effective date
  • The amendments made by this section shall apply to taxable years beginning after December 31, 2024.

SEC. 3. Dependent care assistance program limit doubled

• (a) In general
  • of the Internal Revenue Code of 1986 is amended— Section 129(a)(2)
    • in subparagraph (A), by striking $5,000 ( ,500and inserting inserting0,000 (half such dollar amount), and
    • by striking subparagraph (D).
• (b) Effective date
  • The amendments made by this section shall apply to taxable years beginning after December 31, 2024.

SEC. 4. Employer-provided childcare credit doubled

• (a) In general
  • of the Internal Revenue Code of 1986 is amended by striking striking50,000and inserting $300,000. Section 45F(b)
• (b) Effective date
  • The amendments made by this section shall apply to taxable years beginning after December 31, 2024.