Right Start Child Care and Education Act of 2026

New tax credit for child care providers

If enacted, you would be able to claim a new federal tax credit for eligible individual child care providers. For tax years starting after December 31, 2026, the credit would pay $4,500 if you hold a bachelor's degree, $3,000 with an associate's degree, or $1,500 with an active Child Development Associate credential. To qualify, you would need the degree or active CDA at the close of the tax year and to perform at least 1,200 hours of child care or early childhood education at a licensed facility whose main use is child care. The facility rule is waived if the facility is your principal residence. No more than 25% of children served can be your or your spouse's children. You must elect the credit for the taxable year, and you cannot elect it if you elected it in any of the prior three taxable years.