Federal RuleAug 21
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DOL Rewrites Disability Rules for 'Merit-Based Opportunity' Push
RuleLabor DepartmentFederal Contract Compliance Programs OfficeSignificant Wallet
119-s-1421119th CongressWALLET
Child and Dependent Care Tax Credit Enhancement Act of 2025
Sponsored By: Senator Smith, Tina [D-MN]
Introduced
Summary
Expanded and refundable Child and Dependent Care Tax Credit. This bill would increase how much families can claim for childcare, add income-based phaseouts that are indexed to inflation, and make the credit refundable for many taxpayers.
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- Families with child or dependent care expenses would get larger caps for qualifying costs, raising per-child limits from prior law to $8,000 and family limits to $16,000 and applying a higher applicable percentage subject to income-based phaseouts that start at $125,000 and cap at lower rates above $400,000.
- Lower- and middle-income taxpayers could receive the credit as a refundable benefit if they live in the United States more than half the year, making it available even when tax liability is limited.
- Married taxpayers filing separately would be treated in certain calculations as if they filed jointly for the credit so each spouse can claim a fair share, while the law prevents the combined credit from exceeding the joint-filing amount.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
Bigger child care credit for families
If enacted, families would be able to claim a much larger Child and Dependent Care Tax Credit. The credit rate would start at 50% and drop 1 percentage point for each $2,000 (or part) your AGI is over $125,000, with a floor that itself steps down from 20% above $400,000. The expense caps would rise to $8,000 for one qualifying person and $16,000 for two or more. The credit would be refundable for taxpayers who live in the United States for more than half the year (for joint returns, if either spouse meets this test). Married people who file separately would be treated as if they filed jointly when figuring the rate and qualifying counts, but the two separate credits together could not exceed the amount that a joint return would get. These changes would apply to tax years beginning after December 31, 2024, and the $125,000 cutoff and dollar limits would be indexed for inflation starting with calendar years after 2025.
Sponsors & CoSponsors
Sponsor
Smith, Tina [D-MN]
MN • D
Cosponsors
Sen. Shaheen, Jeanne [D-NH]
NH • D
Sponsored 4/10/2025
Sen. Warnock, Raphael G. [D-GA]
GA • D
Sponsored 4/10/2025
Sen. Wyden, Ron [D-OR]
OR • D
Sponsored 4/10/2025
Sen. Murray, Patty [D-WA]
WA • D
Sponsored 4/10/2025
Sen. Fetterman, John [D-PA]
PA • D
Sponsored 4/10/2025
Sen. Schatz, Brian [D-HI]
HI • D
Sponsored 4/10/2025
Sen. Duckworth, Tammy [D-IL]
IL • D
Sponsored 4/10/2025
Sen. Hirono, Mazie K. [D-HI]
HI • D
Sponsored 4/10/2025
Sen. Van Hollen, Chris [D-MD]
MD • D
Sponsored 4/10/2025
Sen. Durbin, Richard J. [D-IL]
IL • D
Sponsored 4/10/2025
Sen. Klobuchar, Amy [D-MN]
MN • D
Sponsored 4/10/2025
Sen. Heinrich, Martin [D-NM]
NM • D
Sponsored 4/10/2025
Sen. Cantwell, Maria [D-WA]
WA • D
Sponsored 4/10/2025
Sen. King, Angus S., Jr. [I-ME]
ME • I
Sponsored 4/10/2025
Sen. Merkley, Jeff [D-OR]
OR • D
Sponsored 4/10/2025
Sen. Blumenthal, Richard [D-CT]
CT • D
Sponsored 4/10/2025
Sen. Booker, Cory A. [D-NJ]
NJ • D
Sponsored 4/10/2025
Sen. Slotkin, Elissa [D-MI]
MI • D
Sponsored 4/10/2025
Sen. Reed, Jack [D-RI]
RI • D
Sponsored 4/10/2025
Sen. Bennet, Michael F. [D-CO]
CO • D
Sponsored 4/10/2025
Sen. Murphy, Christopher [D-CT]
CT • D
Sponsored 4/10/2025
Sen. Welch, Peter [D-VT]
VT • D
Sponsored 4/10/2025
Sen. Gallego, Ruben [D-AZ]
AZ • D
Sponsored 4/10/2025
Sen. Schumer, Charles E. [D-NY]
NY • D
Sponsored 4/10/2025
Sen. Schiff, Adam B. [D-CA]
CA • D
Sponsored 4/10/2025
Sen. Baldwin, Tammy [D-WI]
WI • D
Sponsored 4/10/2025
Sen. Gillibrand, Kirsten E. [D-NY]
NY • D
Sponsored 4/10/2025
Sen. Whitehouse, Sheldon [D-RI]
RI • D
Sponsored 4/10/2025
Sen. Luján, Ben Ray [D-NM]
NM • D
Sponsored 4/10/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov