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S 1421119th CongressIn Committee
Child and Dependent Care Tax Credit Enhancement Act of 2025
Introduced: Apr 10, 2025
Sponsor: Sen. Smith, Tina [D-MN] (D-Minnesota)
Standard Summary
Comprehensive overview in 1-2 paragraphs
Enhances the Child and Dependent Care Tax Credit with higher dollar limits and full refundability for low-income families.
Key Points
- 1Increases credit limit to $8,000 for one child, $16,000 for two or more
- 2Makes credit fully refundable for taxpayers with principal residence in US
- 3Adjusts phaseout thresholds and percentages
- 4Includes inflation indexing starting in 2026
- 5Applies to tax years beginning after December 31, 2024
Impact Areas
Families with dependentsChild care costsTax policyLow-income households
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