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119-hr-2900119th CongressWALLET

PACE Act

Sponsored By: Representative Tenney, Claudia [R-NY-24]

Introduced

Summary

Makes the Child and Dependent Care Tax Credit refundable and larger. It would also raise the employer-provided dependent care exclusion and index both benefits to inflation for future tax years.

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Bill Overview

Analyzed Economic Effects

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

Bigger dependent care credit for families

If enacted, families could get a larger Child and Dependent Care Tax Credit for tax years after 2025. The credit rate would be 50% and could not fall below 35%. The credit would be refundable. Dollar limits in the credit would rise with inflation after 2025, using 2024 as the base, rounded to $50.

More tax-free dependent care at work

If enacted, workers could exclude up to $7,500 of employer-provided dependent care from taxable income for tax years after 2025. Married filing separately would be limited to half that amount. Starting after 2026, that cap would rise with inflation using 2025 as the base, rounded to the nearest $100.

Sponsors & CoSponsors

Sponsor

Tenney, Claudia [R-NY-24]

NY • R

Cosponsors

  • Rep. Schneider, Bradley Scott [D-IL-10]

    IL • D

    Sponsored 4/10/2025

  • Rep. Vindman, Eugene Simon [D-VA-7]

    VA • D

    Sponsored 12/10/2025

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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