Referred to the House Committee on Ways and Means.
This bill (Child Care Availability and Affordability Act) amends the Internal Revenue Code to (1) expand the employer-provided child care tax credit (higher percentage, larger maximum, joint-ownership rule, stronger small-business benefits); (2) raise the tax-free dependent care assistance exclusion from $5,000 to $7,500 ($3,750 MFS); and (3) replace the current child and dependent care credit with an expanded household and dependent care credit (higher starting percentage, phase-down by income, $5,000/$8,000 caps, and made refundable). Amendments take effect after enactment (taxable years beginning after enactment for the new credit).
Progressives emphasize refundable credit and immediate relief for families
Relative to its intended legislative type, this bill is a well-specified substantive tax-policy change that provides precise statutory mechanics and thorough integration with the Internal Revenue Code, but it lacks explicit fiscal statements and ongoing measurement or oversight provisions.
This bill (Child Care Availability and Affordability Act) amends the Internal Revenue Code to (1) expand the employer-provided child care tax credit (higher percentage, larger maximum, joint-ownership rule, stronger small-business benefits); (2) raise the tax-free dependent care assistance exclusion from $5,000 to $7,500 ($3,750 MFS); and (3) replace the current child and dependent care credit with an expanded household and dependent care credit (higher starting percentage, phase-down by income, $5,000/$8,000 caps, and made refundable).
Amendments take effect after enactment (taxable years beginning after enactment for the new credit).
Content is sympathetic and technically coherent but large revenue impact, lack of offsets, and need for broad agreement reduce chances.
Relative to its intended legislative type, this bill is a well-specified substantive tax-policy change that provides precise statutory mechanics and thorough integration with the Internal Revenue Code, but it lacks explicit fiscal statements and ongoing measurement or oversight provisions.
Progressives emphasize refundable credit and immediate relief for families
These are examples from the analysis, not a ranked list of the most-affected groups.
Progressives emphasize refundable credit and immediate relief for families
Generally favorable: expands employer incentives, raises exclusion, and creates a refundable credit benefiting low- and middle-income families.
Sees the bill as a fiscally targeted approach to increase child care availability and reduce out-of-pocket costs for working caregivers.
Cautious support: prefers employer incentives and refundable aid for working families but is concerned about program cost, complexity, and overlap with existing programs.
Would seek fiscal offsets, clear definitions, and evaluation metrics.
Leans opposed: supports market-friendly employer incentives but objects to expanded refundable credits and larger tax exclusions as increased federal spending and distortion.
Prefers private-sector and state solutions over broad federal refundable benefits.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Content is sympathetic and technically coherent but large revenue impact, lack of offsets, and need for broad agreement reduce chances.
The bill has not accumulated any surfaced votes yet.
Progressives emphasize refundable credit and immediate relief for families
Content is sympathetic and technically coherent but large revenue impact, lack of offsets, and need for broad agreement reduce chances.
Relative to its intended legislative type, this bill is a well-specified substantive tax-policy change that provides precise statutory mechanics and thorough integration with the Internal Revenue Code, but it lacks expl…
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