To amend the Internal Revenue Code of 1986 to increase the amount allowed as a credit under the expenses for household and dependent care services credit and the employer-provided child care credit.

House Votes

This bill makes child and dependent care more affordable by raising how much care costs you can count toward certain federal tax credits. It also boosts the tax credit limit for employers that help provide child care. These changes would start for tax years after the bill becomes law.

Key points:

• Families: Increases the annual expense limit used to figure the Child and Dependent Care Credit from $3,000 to $6,000 for one qualifying person. It also raises the limit for two or more qualifying people (the statute updates that paragraph, increasing it above today’s $6,000).
• Employers: Raises the yearly cap on the Employer-Provided Child Care Credit to $400,000, encouraging more workplace child care support.
• Timing: Applies to tax years beginning after the date it becomes law.

What this means: If you pay for child or dependent care so you can work, you could claim the credit on a larger amount of your expenses. If your employer helps provide child care, this makes it easier for them to offer or expand those benefits.