Bill · H.R. 2900· House(119-HR-2900)
PACE Act
- Introduced
- 4/10/2025
- Last activity
- 4/10/2025 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Claudia Tenney
- Cosponsors
- - 0 - 2
- Introduced
- In Committee
What this bill would do
The "Promoting Affordable Childcare for Everyone Act" aims to amend the Internal Revenue Code of 1986 regarding childcare expenses. It seeks to increase the Child and Dependent Care Tax Credit and make that credit fully refundable. The bill also increases the maximum amount of employer-provided dependent care assistance that can be excluded from gross income. Additionally, it implements inflation adjustments for these specific tax provisions. These changes are intended to take effect for taxable years beginning after December 31, 2025.
Yes· 3 of 11
Does this make child care cost less?+8
The bill directly increases tax credits and employer assistance to make childcare more affordable.
Would households on low incomes be better off under this?+7
Making the credit fully refundable significantly helps low-income households with childcare.
Would middle-income households be better off under this?+6
The bill provides increased tax credits and higher excludable amounts for middle-class earners.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Increased Tax Credit Percentages: The bill changes the credit rate from a 35 percent reduced rate (not below 20 percent) to a 50 percent reduced rate (not below 35 percent) under Section 3, which could provide more financial relief for care expenses.
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Inflation Adjustments for Tax Credits: Under Section 3, the dollar amounts for the Child and Dependent Care Tax Credit will be increased annually based on cost-of-living adjustments for taxable years beginning after 2025.
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Higher Employer-Provided Assistance Limits: Section 4 increases the amount excludable from gross income for employer-provided dependent care assistance from $5,000 to $7,500.
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Inflation Adjustments for Employer Assistance: Section 4 provides for the $7,500 amount to be increased by cost-of-living adjustments for taxable years beginning in a calendar year after 2026.
Potential Negative Impacts for People
- No negative impacts or burdens are explicitly mentioned in the provided text.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Low Income Households+7Good For Middle Class Households+6Good For Children+5Good For Women+5Good For Middle Aged+4Good For Young Adults+4Good For Business Owners+2Good For High Income Households+2
- Social Issues And Justice
- Improves Childcare Affordability+8Improves Poverty Reduction+3
- Economy And Finance
- Reduces Middle Class Taxes+6
- 12/10/2025
- 1 Cosponsor added.
- 4/10/2025
- Referred to the House Committee on Ways and Means.
- 1 Cosponsor added.
- Introduced in House
Bradley SchneiderDemocrat · Illinois
Eugene VindmanDemocrat · Virginia