Bill · S. 1421· Senate(119-S-1421)

Child and Dependent Care Tax Credit Enhancement Act of 2025

Age: 68 years

Minnesota

Introduced: 4/10/2025
Last activity: 4/10/2025 — Read twice and referred to the Committee on Finance.
Sponsored by: Tina Smith
Cosponsors: - 28 - 0

Taxation

Introduced
In Committee

What this bill would do

This bill, known as the "Child and Dependent Care Tax Credit Enhancement Act of 2025," aims to amend the Internal Revenue Code of 1986. It proposes to enhance the Child and Dependent Care Tax Credit and make the credit fully refundable for certain taxpayers. The legislation includes adjustments to the applicable percentage based on adjusted gross income. It also increases the dollar limits on the amount creditable. Furthermore, it establishes a special rule for married couples filing separate returns and includes an inflation adjustment mechanism.

Yes· 3 of 10

Would middle-income households be better off under this?+8
The significant increase in credit limits offers substantial relief to middle-income families.
Does this make child care cost less?+8
The bill directly increases the Child and Dependent Care Tax Credit limits, significantly easing the burden of childcare costs for families.
Would households on low incomes be better off under this?+7
Making the credit fully refundable provides direct financial relief to those with lower incomes.