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119-hr-1426119th CongressWALLET

To amend the Internal Revenue Code of 1986 to increase the amount allowed as a credit under the expenses for household and dependent care services credit and the employer-provided child care credit.

Sponsored By: Representative Mackenzie, Ryan [R-PA-7]

Introduced

Summary

Raises caps on two child-care tax credits. This bill would expand how much families and employers can claim by increasing the household and dependent care expense cap to $6,000 for one qualifying person and $12,000 for two or more and by raising the employer-provided child care calculation cap from $150,000 to $400,000 for taxable years beginning after enactment.

Show full summary
  • Families and households: Parents could use up to $6,000 for one qualifying person and $12,000 for two or more when calculating the household and dependent care expenses credit, increasing the amount of child-care costs that can qualify for a credit.
  • Employers: Companies that offer child-care benefits could base their employer-provided child care credit on up to $400,000 in qualifying expenses instead of $150,000, raising the potential credit available to employers.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

Higher child and dependent care credit limits

If enacted, you could count up to $6,000 of care costs for one qualifying person when claiming this credit. With two or more qualifying persons, you could count up to $12,000. This would apply to tax years starting after the bill is enacted.

Higher cap on employer child care credit

If enacted, employers who provide or help pay for child care could count up to $400,000 of qualifying costs toward the tax credit, up from $150,000. The credit rate would not change under this bill. This would apply to tax years starting after enactment.

Sponsors & CoSponsors

Sponsor

Mackenzie, Ryan [R-PA-7]

PA • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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