Bills · HR 1426
IN COMMITTEE· 119TH CONGRESS
House BillHR 1426Taxation
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.
INTRO FEB 18· LAST ACTION FEB 18
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LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenVoters should care about this bill because it directly addresses the rising cost of child care and dependent care, which is a major financial strain for many families. If this bill becomes law, families who pay for care could see more money returned to them during tax season, freeing up funds for other necessities. This could make it easier for parents to work, knowing their care expenses are partially offset. For businesses, an increased incentive to provide child care could lead to more accessible and affordable care options for employees. This could help companies attract and retain talent, while also improving employee productivity and reducing absenteeism related to child care issues. If it doesn't become law, the current, lower credit limits would remain, offering less financial relief to families and less incentive for businesses to support employee child care needs.
KEY PROVISIONS
4AI-extractedPROVISION 01
Increases the maximum expenses that can be considered for the individual dependent care tax credit from $3,000 to $6,000 for one qualifying dependent.
This doubles the amount of care expenses an individual can use to calculate their tax credit, potentially leading to greater tax savings for families with one dependent.
PROVISION 02
Increases the maximum expenses for the individual dependent care tax credit from $6,000 to $12,000 for two or more qualifying dependents.
This doubles the maximum expenses for families with multiple dependents, offering more significant financial relief for their care costs.
PROVISION 03
Raises the cap on the tax credit for businesses that provide child care services to employees from $150,000 to $400,000.
This makes it much more financially attractive for employers to offer child care benefits, potentially expanding access to care for working parents.
PROVISION 04
The changes to both tax credits will apply to tax years beginning after the bill officially becomes law.
This sets the timeframe for when taxpayers and businesses can start benefiting from the increased credit amounts.
SPONSORSHIP
1 + 0
R· Pennsylvania
YRS IN OFFICE
1
BILLS LED
32
ACTION TIMELINE
2 EVENTSFEB 18
Introduced in House
FEB 18
Referred to the House Committee on Ways and Means.
BILL INFO
TypeHouse Bill
NumberHR 1426
Congress119th
StatusIn Committee
IntroducedFeb 18, 2025
Last actionFeb 18, 2025
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IN COMMITTEE· 119TH CONGRESS · WAYS AND MEANS COMMITTEE · INTRODUCED FEB 18, 2025
House BillHR 1426Taxation
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.
INTRODUCED FEB 18, 2025· LAST ACTION FEB 18, 2025
PASSAGE CHANCES
—%
READING
1 min
COSPONSORS
0
COMPLEXITY
Moderate
