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119-hr-1408119th CongressWALLET

Affordable Child Care Act

Sponsored By: Representative Davids, Sharice [D-KS-3]

Introduced

Summary

This bill would double several federal tax benefits that help families pay for child care. It raises the Child and Dependent Care Credit, expands employer and workplace-dependent care tax breaks, and targets changes to tax years beginning after December 31, 2024.

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  • Families and parents: The Child and Dependent Care Credit caps would increase from $3,000 to $6,000 for the primary limit and from $6,000 to $12,000 for the higher cap that applies when more than one dependent qualifies.
  • Workers using employer plans: The Dependent Care Assistance Program limit would double from $5,000 to $10,000, letting more dependent care costs be sheltered pre-tax.
  • Employers offering childcare: The Employer-Provisioned Childcare Credit cap would rise from $150,000 to $300,000, increasing the maximum credit available to businesses that provide childcare.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 3 benefits, 0 costs, 0 mixed.

Bigger child care credit for families

This bill would raise the expense caps used for the child and dependent care tax credit. You could count up to $6,000 for one qualifying person, or $12,000 for two or more. Your credit would still equal your credit rate times your allowed expenses. If enacted, this would start for tax years beginning after December 31, 2024.

More pre-tax dependent care at work

This bill would let workers exclude more employer child and dependent care from income. You could set aside up to $10,000 pre-tax each year through your job. If married filing separately, the limit would be $5,000. You must be in an employer dependent care plan to use this. The change would start for tax years beginning after December 31, 2024. The bill would also strike one related subparagraph in current law.

Larger employer credit for child care

This bill would raise the annual cap on the employer child care tax credit. Employers could claim up to $300,000 in credit each year, up from $150,000. This would apply to tax years beginning after December 31, 2024. Actual savings would depend on offering qualifying child care benefits or services.

Sponsors & CoSponsors

Sponsor

Davids, Sharice [D-KS-3]

KS • D

Cosponsors

  • Rep. Fitzpatrick, Brian K. [R-PA-1]

    PA • R

    Sponsored 2/18/2025

  • Rep. Bonamici, Suzanne [D-OR-1]

    OR • D

    Sponsored 2/18/2025

  • Rep. Mackenzie, Ryan [R-PA-7]

    PA • R

    Sponsored 2/18/2025

  • Rep. Sorensen, Eric [D-IL-17]

    IL • D

    Sponsored 2/27/2025

  • Rep. Carbajal, Salud O. [D-CA-24]

    CA • D

    Sponsored 3/3/2025

  • Del. Norton, Eleanor Holmes [D-DC-At Large]

    DC • D

    Sponsored 6/23/2025

  • Rep. Ansari, Yassamin [D-AZ-3]

    AZ • D

    Sponsored 6/23/2025

  • Rep. Grijalva, Adelita S. [D-AZ-7]

    AZ • D

    Sponsored 8/24/2026

Roll Call Votes

No roll call votes available for this bill.

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