Expands tax help for working families’ child and dependent care costs and encourages employers—especially small businesses—to offer child care benefits. It raises the employer child care tax credit, increases the amount workers can set aside tax‑free for dependent care, and creates a larger, income‑phased child and dependent care tax credit.

The employer and dependent care account changes apply to expenses after enactment. The new household and dependent care credit applies to tax years starting after enactment and includes caps, earned‑income rules, and documentation requirements.