Bill > HR1827

This bill proposes several significant changes to tax credits and deductions related to child care expenses. First, it expands the employer-provided child care credit by increasing the percentage of qualified child care expenditures from 25% to 50%, and raising the maximum credit amount from $150,000 to $500,000. The bill also creates a special provision for small businesses, allowing them to claim an even higher credit of 60% with a maximum of $600,000. Additionally, the legislation increases the amount excludable for dependent care assistance programs from $5,000 to $7,500 for individuals (and from $2,500 to $3,750 for married individuals filing separately). Perhaps most significantly, the bill introduces a new refundable tax credit for household and dependent care expenses, which would allow taxpayers to claim up to 50% of their employment-related child care expenses, with the percentage gradually reducing based on income levels. The credit would apply to care for children under 13, dependents who are physically or mentally incapable of self-care, and spouses meeting similar criteria. The bill sets specific limits on creditable expenses (up to $5,000 for one qualifying individual and $8,000 for two or more) and includes detailed rules about qualifying expenses, income limitations, and other technical provisions to ensure proper implementation of the new tax benefits.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/1827/all-info