Bill Details
HR.1408 - 119th Congress
Status
Latest action
2025-02-18 - Referred to the House Committee on Ways and Means.
Introduced Date
2025-02-18
Policy Area
Taxation
Committees
View committees (1)
Sponsors
Cosponsors
View cosponsors (7)
7
0
0
AI Summary This summary was generated by AI from the bill text. AI can get information wrong.
This bill would increase several tax breaks for families and employers to help cover child and dependent care costs. It would double the amount people can use for the child and dependent care tax credit, raise the limit for money set aside through dependent care assistance programs, and increase the tax credit for employers that help provide child care. These changes would start with tax years after December 31, 2024.
- The child and dependent care tax credit would be based on higher expense limits, raising the amounts from $3,000 to $6,000 and from $6,000 to $12,000.
- The limit for dependent care assistance programs offered by employers would increase from $5,000 to $10,000, with the usual lower limit for certain married taxpayers filing separately also rising.
- The employer-provided child care tax credit would be doubled, increasing the cap from $150,000 to $300,000.
- All of these changes would apply to tax years beginning after December 31, 2024.
Official Summaries
No summaries available
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1408 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 1408
To amend the Internal Revenue Code of 1986 to double the value of
certain tax benefits relating to children and dependents.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 18, 2025
Ms. Davids of Kansas (for herself, Mr. Fitzpatrick, Ms. Bonamici, and
Mr. Mackenzie) introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to double the value of
certain tax benefits relating to children and dependents.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Affordable Child Care Act''.
SEC. 2. CHILD AND DEPENDENT CARE CREDIT DOUBLED.
(a) In General.--Section 21(c) of the Internal Revenue Code of 1986
is amended--
(1) in paragraph (1), by striking ``$3,000'' and inserting
``$6,000'', and
(2) in paragraph (2), by striking ``$6,000'' and inserting
``$12,000''.
(b) Conforming Amendment.--Section 21 of such Code is amended by
striking subsection (g) and redesignating subsection (h) as subsection
(g).
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2024.
SEC. 3. DEPENDENT CARE ASSISTANCE PROGRAM LIMIT DOUBLED.
(a) In General.--Section 129(a)(2) of the Internal Revenue Code of
1986 is amended--
(1) in subparagraph (A), by striking ``$5,000 ($2,500'' and
inserting ``$10,000 (half such dollar amount)'', and
(2) by striking subparagraph (D).
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2024.
SEC. 4. EMPLOYER-PROVIDED CHILDCARE CREDIT DOUBLED.
(a) In General.--Section 45F(b) of the Internal Revenue Code of
1986 is amended by striking ``$150,000'' and inserting ``$300,000''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2024.
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