Affordable Child Care Act

Summary#

This bill, called the Affordable Child Care Act, changes several federal tax provisions that relate to child and dependent care. It doubles the dollar limits in three places: the child and dependent care tax credit amounts in Internal Revenue Code section 21(c); the limit for employer dependent care assistance programs in section 129(a)(2); and the maximum amount in section 45F(b) for the employer-provided childcare credit. The bill says the changes apply to taxable years beginning after December 31, 2024.

What it means for you#

• If you claim the child and dependent care credit, the dollar limits used to calculate the credit are doubled under the changes shown in the bill text.
• If your employer offers a dependent care assistance program (a workplace benefit that helps pay care costs), the statutory dollar limit for that program is doubled to the new amount shown in the bill text.
• If your employer claims the employer-provided childcare credit, the maximum amount an employer can claim is doubled in the statute.
• These changes apply for tax years that start after December 31, 2024.

Expenses#

No publicly available information.

Proponents' View#

Sponsors listed in the bill metadata include Sharice Davids, Brian Fitzpatrick, Suzanne Bonamici, Ryan Mackenzie, Eric Sorensen, Salud Carbajal, Eleanor Norton, Yassamin Ansari, and Adelita Grijalva. No publicly available information in the bill text about their stated arguments.

Opponents' View#

No publicly available information.