PlainBillCongress, translated.Legislation. Context. Public interest.Referred to the House Committee on Ways and Means.
Congressional Research Service
Version 00 · Introduced in House · Feb 13, 2025
Expanding Child Care Access Act of 2025
This bill establishes a temporary (for seven years) refundable tax credit for certain expenses incurred to establish and operate a qualified family child care provider. (Conditions and limitations apply.)
Under the bill, a qualified family child care provider is a child care provider that
Showing the opening paragraphs of the official summary.
provides child care services at the taxpayer's primary residence for at least two children (other than the children of such taxpayer) for a significant portion of the tax year,
receives compensation for such child care services, and
is licensed or registered to provide such child care services by the state in which such services are provided.
The bill allows a taxpayer that operates a qualified family child care provider to claim a tax credit of up to $5,000 for
child care licensing fees;
child care supplies (e.g., diapers, food, toys, and learning materials);
liability insurance;
fencing (including installation costs);
outdoor playground equipment (including installation costs);
furniture necessary to provide child care;
the salary of an employee (other than the taxpayer);
printers and computers;
professional training required by the state for licensing or registration; and
remediation or renovation of a primary residence to meet state licensing or registration requirements.
The tax credit may only be claimed once and may not be claimed for expenses for which another tax deduction or tax credit is allowed.
Finally, the bill requires the Internal Revenue Service to issue guidance on the tax credit, including guidance related to information reporting requirements.
People & committees
Rep. Conaway, Herbert [D-NJ-3] · D–NJ
Legislative record
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Referred to the House Committee on Ways and Means.
Introduced in House
Introduced in House
Primary sources
Text links open the official source. We also preserved the text version used in the PlainBill explanation below.
Source last updated: Mar 31, 2026. Consult Congress.gov for the current record.
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PlainBill explanation
Based on the full Introduced in House · 2025-02-13 text. This explanation has not received human editorial review. This overview describes the proposal’s major provisions; it does not establish what its real-world effects would be.
The proposed Expanding Child Care Access Act of 2025 would give qualifying home-based child care operators a one-time federal tax credit of up to $5,000 for eligible startup expenses. Operators would need to meet state licensing or registration requirements and other eligibility rules. Eligible costs would include supplies, equipment, insurance and certain home improvements. The proposal would apply to expenses paid or incurred after enactment and would end eligibility for tax years beginning more than seven years after enactment.
This Act may be cited as the Expanding Child Care Access Act of 2025.
there shall be allowed as a credit against the tax imposed by this subtitle for any taxable year an amount equal to so much of the qualified child care startup expenses of the taxpayer for such taxable year or for the preceding taxable year as do not exceed $5,000.
(1) provides child care services for compensation that, as of the last day of such taxable year, is licensed or registered under State law and satisfies State and local requirements applicable to the child care services it provides, (2) primarily provides child care at the taxpayer’s primary residence
(2) Child care supplies including diapers, food, toys, and learning materials. (3) Liability insurance. (4) Fencing and installation of such fencing. (5) Outdoor playground equipment and installation of such equipment.
(10) Remediation or renovation of the taxpayer’s primary residence required as a condition of State licensure or registration.
No credit shall be allowed under subsection (a) to any taxpayer to whom a credit was allowed under such subsection in any other taxable year.
The amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act.
No credit shall be allowed under subsection (a) for any taxable year beginning after the date that is 7 years after the date of the enactment of this section.
The bill would create a tax credit—a dollar-for-dollar reduction in tax—equal to eligible expenses, capped at $5,000. Expenses could come from the tax year for which the credit is claimed or the preceding tax year, subject to the bill’s rule limiting eligibility to expenses paid or incurred after enactment.
In the case of a qualified taxpayer, there shall be allowed as a credit against the tax imposed by this subtitle for any taxable year an amount equal to so much of the qualified child care startup expenses of the taxpayer for such taxable year or for the preceding taxable year as do not exceed $5,000.
The amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act.
To qualify, a taxpayer would have to operate a paid family child care service primarily at the taxpayer’s main home. By the last day of the tax year, the provider would need to be licensed or registered under state law and meet applicable state and local requirements. It would also have to serve at least two children, excluding the taxpayer’s own children, for a significant portion of that tax year.
the term qualified taxpayer means, with respect to a taxable year, a taxpayer that operates a qualified family child care provider.
the term qualified family child care provider means a family child care provider that, with respect to a taxable year— (1) provides child care services for compensation that, as of the last day of such taxable year, is licensed or registered under State law and satisfies State and local requirements applicable to the child care services it provides, (2) primarily provides child care at the taxpayer’s primary residence, and (3) provided child care services to not less than 2 children (excluding children of such taxpayer) for a significant portion of such taxable year.
Eligible expenses would include licensing fees, child care supplies such as diapers and food, liability insurance, fencing and its installation, outdoor playground equipment and its installation, necessary furniture, and printers and computers. These expenses would have to be paid or incurred to establish and operate a qualifying provider.
the term qualified child care startup expenses means amounts paid or incurred for any of the following in order to establish and operate a qualified family child care provider: (1) Child care licensing fees. (2) Child care supplies including diapers, food, toys, and learning materials. (3) Liability insurance. (4) Fencing and installation of such fencing. (5) Outdoor playground equipment and installation of such equipment. (6) Furniture necessary to provide child care.
(8) Printer and computers.
Eligible expenses would also include another employee’s salary, but not the taxpayer’s own salary. Professional training and work to fix or renovate the taxpayer’s main home would qualify only when required for state licensing or registration.
the term qualified child care startup expenses means amounts paid or incurred for any of the following in order to establish and operate a qualified family child care provider
(7) Salary of an employee other than the taxpayer.
(9) Professional training required as a condition of State licensure or registration. (10) Remediation or renovation of the taxpayer’s primary residence required as a condition of State licensure or registration.
A taxpayer could receive the credit for only one tax year. An expense could not qualify if a deduction or credit for that same expense is allowed under another provision of the same tax-code chapter.
(e) Limitations No credit shall be allowed under subsection (a) to any taxpayer to whom a credit was allowed under such subsection in any other taxable year. (f) Denial of double benefit No credit shall be allowed under subsection (a) for any expense for which a deduction or credit is allowed under any other provision of this chapter.
The bill would require the Secretary to issue necessary or appropriate regulations or guidance. This would include rules on reporting information and coordinating with state and local licensing or registration bodies as the Secretary considers appropriate.
The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including regulations relating to such information reporting and coordination with state and local licensing or registration entities as the Secretary determines appropriate.
The changes would apply to expenses paid or incurred after enactment. The credit would be unavailable for tax years beginning after the seventh anniversary of enactment; the cutoff is based on when the tax year begins.
(h) Sunset No credit shall be allowed under subsection (a) for any taxable year beginning after the date that is 7 years after the date of the enactment of this section.
(d) Effective date The amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act.
The bill would add the new credit as tax-code section 36C, insert a reference to it into section 1324(b)(2) of title 31, and update the tax code’s table of sections. The supplied text does not reproduce the existing title 31 provision, so the effect of that cross-reference cannot be fully explained from this bundle.
Subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 36B the following new section: 36C. Licensed family child care credit
(b) Conforming amendment Section 1324(b)(2) of title 31, United States Code, is amended by inserting 36C, after 36B,.
(c) Clerical amendment The table of sections for subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 36B the following new item: Sec. 36C. Licensed family child care credit.
The supplied action snapshot, updated March 31, 2026, records introduction in the House and referral to the House Committee on Ways and Means on February 13, 2025. It does not establish later legislative action or enactment.
Source snapshot updated 2026-03-31T13:59:47Z. 2025-02-13: Referred to the House Committee on Ways and Means. 2025-02-13: Introduced in House
A closer look
Reviewed version: Introduced in House · 2025-02-13. These findings describe provisions and who may benefit; they are not judgments of waste, corruption, or motive.
This review covers the supplied bill text. “None identified” does not rule out provisions in later versions or accompanying reports and disclosures.
Provisions outside the bill’s main subject, or policy changes attached to appropriations.
None identified in the reviewed text
No unrelated provision or policy change attached to appropriations was identified in the complete supplied introduced text. This conclusion is limited to that version and does not establish absence in other versions or accompanying materials.
Spending directed to particular recipients or places outside ordinary competitive or formula-based allocation.
None identified in the reviewed text
No congressionally directed spending for particular recipients or places was identified in the complete supplied introduced text. This conclusion is limited to that version; formal earmark status and accompanying materials are not established by the bundle.
Narrow exceptions, exemptions, or preferential treatment that warrant a closer look.
None identified in the reviewed text
No materially narrow special exemption or preferential carve-out beyond ordinary eligibility for the proposed credit was identified in the complete supplied introduced text. Coverage of the program’s intended beneficiaries alone is not a targeted-benefit finding. This conclusion does not extend to other versions or accompanying materials.
Full text preserved for this analysis. Legislative record snapshot: Mar 31, 2026. How PlainBill uses AI