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HR 1827119th CongressIntroduced
Child Care Availability and Affordability Act
Introduced: Oct 29, 2025
Economy & TaxesLabor & EmploymentSocial Services
Standard Summary
Comprehensive overview in 1-2 paragraphs
The Child Care Availability and Affordability Act expands tax incentives for employers offering child care services, increases the dependent care assistance exclusion, and establishes a refundable credit for families to reduce child care costs, aiming to improve workforce participation and affordability.
Key Points
- 1Increases employer-provided child care credit from 25% to 50% of qualified expenditures, with higher limits for small businesses.
- 2Raises the dependent care assistance exclusion to $7,500 ($3,750 for separate filers) under employer-sponsored programs.
- 3Creates a new refundable tax credit (up to 50%) for household and dependent care expenses necessary for employment, with income-based phaseouts.
Impact Areas
Working families with children under 13 or dependents requiring careEmployers investing in childcare facilities or assistance programsSmall businesses qualifying under gross receipts testsChild care providers and dependent care centers
Generated by legislative-analysis-v2 on Nov 9, 2025