Child Care Availability and Affordability Act

Increases federal tax support for work-related child and dependent care by raising the employer-provided child care tax credit, increasing the tax-free exclusion for employer dependent care assistance, and creating a new refundable tax credit for household and dependent care expenses that enable a taxpayer to work. The changes raise benefit amounts and caps, add special rules for jointly operated facilities and small employers, and include income-based phase-downs for the new refundable credit. Most changes apply to amounts paid or incurred after enactment or to taxable years beginning after enactment.