119th (2025–2027)
H.R. 1426
This bill doubles the maximum amount that an individual may claim as a federal tax credit for qualified child and dependent care expenses and increases the maximum amount an employer may claim as a federal business tax credit for providing certain child care services to employees.Under the bill, the annual maximum amount allowed for the child and dependent care tax credit is increased to $6,000 (from $3,000) for individuals with one qualifying child or dependent, or to $12,000 (from $6,000) for individuals with two or more qualifying children or dependents. (Under current law, an individual may claim a nonrefundable tax credit for a portion of qualified child and dependent care expenses paid so that the individual or the individual’s spouse can work or look for work.)Further, the bill increases to $400,000 (from $150,000) the annual maximum amount that an employer may claim as a tax credit for providing certain child care services to employees. (Under current law, an employer may claim a nonrefundable business tax credit for a percentage of qualified child care facility expenses and child care referral and resource expenses.)