Modernizing Tax Incentives for Parents and Employers
Child care-related provisions in the federal tax code promote parental choice, ensuring parents are able to claim a credit for the type of care that best fits their family’s individual needs, whether it be center-based, faith-based, or home-based child care. These credits also provide incentives to employers who are looking to be responsive to the needs of their own workforce by helping to offset child care costs and grow supply in communities.
Tell Congress: Protect and expand the Child and Dependent Care Tax Credit
Overview of Tax Provisions
- These one-pagers provide a deep dive into three primary provisions, including: CDCTC, 45F, and DCAP.
- This side-by-side explainer compares the tax provisions and shows how they work together.
Legislation
- The Child Care Availability and Affordability Act: Led by Senators Katie Britt (R-AL) and Tim Kaine (D-VA)in the Senate and Representatives Salud Carbajal (D-CA) and Rep. Mike Lawler (R-NY) in the House
- The Affordable Child Care Act: Led by Representatives Sharice Davids (D-KS), Brian Fitzpatrick (R-PA), Ryan Mackenzie (R-PA), and Suzanne Bonamici (D-OR)
Letters of Support
- December 2024: Letter to President-Elect Trump, Senate Finance Committee, House Ways & Means Committees, and House and Senate Leadership signed by 127 organizations and businesses including national and from 40 states and territories.
- August 2024: Letter to House Ways and Means Committee Tax Teams from more than 150 organizations, Chambers of Commerce and businesses.
- And more.