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Child and Dependent Care Tax Credit Enhancement Act of 2025

In committee: it can still change before the session ends.

US S 1421 · Senate Bill · 119th Congress

Stage
In committee
Started in
Senate
Sponsors
+26
Latest action
Apr 10, 2025

What it does

The Child and Dependent Care Tax Credit Enhancement Act of 2025 would increase the maximum credit amounts from $3,000 to $8,000 for one qualifying individual and from $6,000 to $16,000 for two or more, while raising the applicable percentage to 50% for lower-income taxpayers and phasing it down based on income. It would make the credit fully refundable for taxpayers with a principal place of abode in the U.S. for more than half the year, adjust income thresholds and dollar limits for inflation starting in 2026, and modify rules for married couples filing separately to prevent disadvantage. The changes would apply to taxable years beginning after December 31, 2024.

AI summary · The lawmakers haven’t published an official summary of this bill yet, so 52 wrote this one from the bill’s text.

Read the full textRead it on the official site

Where it stands

  1. Introduced (Done)

    Apr 10, 2025

  2. Committee (Current step)

    In committee · Apr 10, 2025

  3. Floor (Not started)

  4. Law (Not started)

What moved

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Who is involved

Sponsors

The lawmakers who put their names on it, lead sponsors first.

In the news

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Where it goes next

While a bill can still move, the questions are about people and money.

Work with this bill

Child and Dependent Care Tax Credit Enhancement Act of 2025 | 52