What This Bill Does · Plain English
Summary · Congress.gov
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.)
Action Timeline
2025-02-18
Referred to the House Committee on Ways and Means.
2025-02-18
Introduced in House
2025-02-18
Introduced in House
Frequently Asked Questions
Did HR.1426 pass?
HR.1426 is still alive. Current stage: COMMITTEE. Pass likelihood: 38%.
What does HR.1426 do?
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 m…
Who sponsored HR.1426?
HR.1426 was sponsored by Ryan Mackenzie (R-Pennsylvania).
Full Bill Text
119 HR 1426 IH: To amend the Internal Revenue Code of 1986 to increase the amount allowed as a credit under the expenses for household and dependent care services credit and the employer-provided child care credit. U.S. House of Representatives 2025-02-18 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. I 119th CONGRESS 1st Session H. R. 1426 IN THE HOUSE OF REPRESENTATIVES February 18, 2025 Mr. Mackenzie introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to increase the amount allowed as a credit under the expenses for household and dependent care services credit and the employer-provided child care credit. 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 . (b) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act. 2. Increase in employer-provided child care credit (a) In general Section 45F(b) is amended by striking $150,000 and inserting $400,000 . (b) Effective date The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act.
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