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HR 2994119th CongressIntroduced
Child and Dependent Care Tax Credit Enhancement Act of 2025
Introduced: Oct 29, 2025
Economy & TaxesLabor & EmploymentSocial Services
Standard Summary
Comprehensive overview in 1-2 paragraphs
The Child and Dependent Care Tax Credit Enhancement Act of 2025 increases tax credit amounts, adjusts income thresholds, and makes the credit fully refundable for eligible taxpayers to reduce child and dependent care costs.
Key Points
- 1Raises the maximum credit limit for child/dependent care expenses from $3,000 to $8,000 (individual) and $6,000 to $16,000 (joint returns).
- 2Makes the credit fully refundable for taxpayers with a principal U.S. residence for over half the year, improving accessibility for low-income families.
- 3Adjusts income phaseout thresholds to reduce the applicable percentage by 1% per $2,000 over $125,000 AGI, with a 20% floor for incomes above $400,000.
Impact Areas
Families with children or dependentsLow- and middle-income taxpayersMarried couples filing separate returnsFederal tax revenue and budgetary planning
Generated by legislative-analysis-v1 on Nov 6, 2025