Referred to the House Committee on Ways and Means.
Taxation
Why This Matters
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.
