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
To amend the Internal Revenue Code of 1986 to double the value of certain tax benefits relating to children and dependents.
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.