Child and Dependent Care Tax Credit Enhancement Act of 2025
Sponsored By: Representative Rep. Davis, Danny K. [D-IL-7]
Introduced
Summary
Would expand and make the Child and Dependent Care Tax Credit refundable for eligible taxpayers. It would boost how much expenses count toward the credit, add income-based credit rates with phaseouts, and index key thresholds to inflation.
Show full summary
- Families with children and other dependents would get a bigger credit. The bill would set a baseline 50% credit and raise the qualifying expense cap to $8,000 for a single qualifying person.
- Lower-income taxpayers who live in the United States for more than half the year would be able to treat the credit as refundable so they can receive it even if they owe little or no tax.
- Married people filing separately would be treated as if they filed jointly for computing each spouse’s share of the credit. The bill would also index the AGI thresholds and dollar caps to inflation beginning after 2025.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 2 benefits, 0 costs, 1 mixed.
Bigger child care credit for families
If enacted, you could claim a larger child and dependent care credit for tax years after Dec. 31, 2024. The credit would start at 50% of eligible expenses and drop by 1 point for each $2,000 of AGI over $125,000. It would not go below a separate phaseout percentage that starts at 20% and itself drops by 1 point per $2,000 over $400,000, down to zero. You could count up to $8,000 of expenses for one person, or $16,000 for two or more. Starting in 2026, the $125,000 threshold and these dollar caps would rise with inflation and be rounded down to the nearest $100.
Refundable child care credit for U.S. residents
For tax years after Dec. 31, 2024, the child and dependent care credit would be refundable if you (or either spouse on a joint return) lived in the U.S. for more than half the year. If your credit is bigger than your tax bill, you could get the extra as a refund.
Rules for married filing separately
For tax years after Dec. 31, 2024, married people who file separate returns would figure the child care credit as if filing jointly to set the percentage, qualifying individuals, and employer benefit limits. Together, both spouses could not claim more than the credit allowed on a joint return. The Treasury would issue rules to explain the details.
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Sponsors & CoSponsors
Sponsor
Rep. Davis, Danny K. [D-IL-7]
IL • D
Cosponsors
Rep. DelBene, Suzan K. [D-WA-1]
WA • D
Sponsored 4/24/2025
Rep. Sánchez, Linda T. [D-CA-38]
CA • D
Sponsored 4/24/2025
Rep. Beyer, Donald S. [D-VA-8]
VA • D
Sponsored 4/24/2025
Rep. Moore, Gwen [D-WI-4]
WI • D
Sponsored 4/24/2025
Rep. Chu, Judy [D-CA-28]
CA • D
Sponsored 4/24/2025
Rep. Sewell, Terri A. [D-AL-7]
AL • D
Sponsored 4/24/2025
Rep. Boyle, Brendan F. [D-PA-2]
PA • D
Sponsored 4/24/2025
Rep. McCollum, Betty [D-MN-4]
MN • D
Sponsored 4/24/2025
Rep. Brownley, Julia [D-CA-26]
CA • D
Sponsored 4/24/2025
Rep. Larson, John B. [D-CT-1]
CT • D
Sponsored 4/24/2025
Rep. Wilson, Frederica S. [D-FL-24]
FL • D
Sponsored 4/24/2025
Del. Norton, Eleanor Holmes [D-DC-At Large]
DC • D
Sponsored 4/24/2025
Rep. Cleaver, Emanuel [D-MO-5]
MO • D
Sponsored 4/24/2025
Rep. Carson, Andre [D-IN-7]
IN • D
Sponsored 4/24/2025
Rep. Khanna, Ro [D-CA-17]
CA • D
Sponsored 4/24/2025
Rep. Connolly, Gerald E. [D-VA-11]
VA • D
Sponsored 4/24/2025
Rep. Panetta, Jimmy [D-CA-19]
CA • D
Sponsored 4/24/2025
Rep. Olszewski, Johnny [D-MD-2]
MD • D
Sponsored 4/28/2025
Rep. Gomez, Jimmy [D-CA-34]
CA • D
Sponsored 4/28/2025
Rep. Evans, Dwight [D-PA-3]
PA • D
Sponsored 4/28/2025
Latimer
NY • D
Sponsored 4/28/2025
Rep. Fields, Cleo [D-LA-6]
LA • D
Sponsored 6/10/2025
Rep. Ramirez, Delia C. [D-IL-3]
IL • D
Sponsored 6/20/2025
Morrison
MN • D
Sponsored 7/10/2025
Rep. Magaziner, Seth [D-RI-2]
RI • D
Sponsored 9/2/2025
Rep. McDonald Rivet, Kristen [D-MI-8]
MI • D
Sponsored 10/24/2025
Roll Call Votes
No roll call votes available for this bill.
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