PlainBillCongress, translated.Legislation. Context. Public interest.Referred to the House Committee on Ways and Means.
Congressional Research Service
Version 00 · Introduced in House · Feb 18, 2025
This bill doubles the maximum amount that an individual may claim as a federal tax credit for qualified child and dependent care expenses and increases the maximum amount an employer may claim as a federal business tax credit for providing certain child care services to employees.
Under the bill, the annual maximum amount allowed for the child and dependent care tax credit is increased to $6,000 (from $3,000) for individuals with one qualifying child or dependent, or to $12,000 (from $6,000) for individuals with two or more qualifying children or dependents. (Under current law, an individual may claim a nonrefundable tax credit for a portion of qualified child and dependent care expenses paid so that the individual or the individual’s spouse can work or look for work.)
Further, the bill increases to $400,000 (from $150,000) the annual maximum amount that an employer may claim as a tax credit for providing certain child care services to employees. (Under current law, an employer may claim a nonrefundable business tax credit for a percentage of qualified child care facility expenses and child care referral and resource expenses.)
People & committees
Rep. Mackenzie, Ryan [R-PA-7] · R–PA
Legislative record
A procedural vote is different from passage. Passage in one chamber does not establish enactment. Explore the glossary.
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.
No related bills are listed in this snapshot. This does not establish whether the proposal has appeared in earlier Congresses.
Source last updated: May 6, 2026. Consult Congress.gov for the current record.
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PlainBill explanation
Based on the full Introduced in House · 2025-02-18 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.
This bill proposes increasing dollar amounts in federal tax provisions for household and dependent care expenses and for employer-provided child care. It concerns taxpayers claiming those care-related credits, which reduce taxes owed. The changes would start with tax years beginning after enactment. The supplied text does not establish how much any taxpayer would save.
1. Increase in credit for expenses for household and dependent care services
2. Increase in employer-provided child care credit
The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.
The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act.
Section 1 would replace $3,000 with $6,000 in section 21(c)(1) of the Internal Revenue Code and $6,000 with $12,000 in section 21(c)(2), concerning household and dependent care expenses. These are changes to statutory dollar amounts, not a promise that taxpayers would receive credits of those amounts.
1. Increase in credit for expenses for household and dependent care services (a) In general Section 21(c) of the Internal Revenue Code of 1986 is amended— (1) in paragraph (1), by striking $3,000 and inserting $6,000, and (2) in paragraph (2), by striking $6,000 and inserting $12,000.
Section 2 would replace $150,000 with $400,000 in section 45F(b), concerning the employer-provided child care credit. The provision does not reproduce the surrounding rules governing that amount.
2. Increase in employer-provided child care credit (a) In general Section 45F(b) is amended by striking $150,000 and inserting $400,000.
Both proposed changes would apply to tax years beginning after the enactment date. Neither section specifies a calendar start date or an expiration date.
(b) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.
(b) Effective date The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act.
The supplied actions snapshot, updated May 6, 2026, records introduction in the House and referral to the House Committee on Ways and Means on February 18, 2025.
Source snapshot updated 2026-05-06T13:21:38Z. 2025-02-18: Referred to the House Committee on Ways and Means. 2025-02-18: Introduced in House
A closer look
Reviewed version: Introduced in House · 2025-02-18. 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 does not cover 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 does not establish the absence of earmarks in other versions or accompanying materials.
Narrow exceptions, exemptions, or preferential treatment that warrant a closer look.
None identified in the reviewed text
No materially narrow carve-out, special exemption, or preferential exception was identified in the complete supplied introduced text. Ordinary benefits for the tax provisions' intended beneficiaries do not alone qualify. This conclusion does not cover other versions or accompanying materials.
Full text preserved for this analysis. Legislative record snapshot: May 6, 2026. How PlainBill uses AI