Referred to the House Committee on Ways and Means.
This bill revises Section 21 of the Internal Revenue Code to (1) raise the maximum applicable percentage of the Child and Dependent Care Tax Credit to 50% with an AGI-based phasedown, (2) increase the dollar limits on qualified expenses from $3,000/$6,000 to $8,000/$16,000, (3) make the credit refundable for taxpayers whose principal abode is in the U.S. more than half the year, (4) add inflation adjustments for key dollar and threshold amounts, and (5) add a special rule for married taxpayers filing separately. The changes apply to taxable years beginning after December 31, 2024.
Left emphasizes child affordability and refundability benefits.
Relative to its intended legislative type, this bill is a focused statutory amendment that specifies concrete changes to the Child and Dependent Care Tax Credit (rates, caps, phaseouts, refundability, and inflation adjustments).
This bill revises Section 21 of the Internal Revenue Code to (1) raise the maximum applicable percentage of the Child and Dependent Care Tax Credit to 50% with an AGI-based phasedown, (2) increase the dollar limits on qualified expenses from $3,000/$6,000 to $8,000/$16,000, (3) make the credit refundable for taxpayers whose principal abode is in the U.S. more than half the year, (4) add inflation adjustments for key dollar and threshold amounts, and (5) add a special rule for married taxpayers filing separately.
The changes apply to taxable years beginning after December 31, 2024.
Substantive expansion of a refundable tax credit is administratively straightforward but fiscally large, making bipartisan consensus necessary and uncertain.
Relative to its intended legislative type, this bill is a focused statutory amendment that specifies concrete changes to the Child and Dependent Care Tax Credit (rates, caps, phaseouts, refundability, and inflation adjustments). The core legal mechanics are specified with statutory language and an effective date, but the text omits fiscal commentary and broader administrative or accountability provisions.
Left emphasizes child affordability and refundability benefits.
These are examples from the analysis, not a ranked list of the most-affected groups.
Left emphasizes child affordability and refundability benefits.
Likely strongly supportive: expands credit size, makes it refundable for many low-income families, and indexes amounts to inflation.
Views this as direct support for working families and childcare affordability.
Cautiously favorable: the bill targets childcare affordability and aids workforce participation, but raises fiscal and administrative questions.
Support depends on cost estimates and implementation details.
Likely opposed or skeptical: views this as an expensive expansion of refundable tax spending that increases federal involvement in family costs.
Prefers market or state solutions and fiscal restraint.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Substantive expansion of a refundable tax credit is administratively straightforward but fiscally large, making bipartisan consensus necessary and uncertain.
The bill has not accumulated any surfaced votes yet.
Left emphasizes child affordability and refundability benefits.
Substantive expansion of a refundable tax credit is administratively straightforward but fiscally large, making bipartisan consensus necess…
Relative to its intended legislative type, this bill is a focused statutory amendment that specifies concrete changes to the Child and Dependent Care Tax Credit (rates, caps, phaseouts, refundability, and inflation adju…
Go beyond the headline summary with full stakeholder mapping, legislative design analysis, passage barriers, and lens-by-lens tradeoff breakdowns.