The Affordable Child Care Act would double certain tax benefits for families with children or dependents in the federal tax code.
Who this affects
Families claiming credits · Employees using programs · Employers using programs
What changes is this bill making?
1Doubles the child and dependent care tax credit limits from $3,000 to $6,000 for one qualifying individual and from $6,000 to $12,000 for two or more.
2Raises the annual exclusion for employer-sponsored dependent care assistance from $5,000 to $10,000 and removes a related program provision.
3Doubles the cap on the employer-provided childcare credit from $150,000 to $300,000.
4All changes apply to tax years beginning after December 31, 2024.
