Expanding Child Care Access Act of 2025
Summary
What This Bill Does
The Expanding Child Care Access Act creates a new Internal Revenue Code section 36C licensed family child care credit. A qualified taxpayer operating a qualified family child care provider may claim a credit for qualified child care startup expenses paid or incurred in the current or prior taxable year, capped at $5,000. A qualified provider must be licensed or registered under state law, satisfy state and local child care requirements, primarily provide care at the taxpayer's primary residence, and provide paid child care to at least two children other than the taxpayer's own children for a significant portion of the year. The bill targets startup costs for small, home-based child care providers, which can affect local supply for families needing care.
Who Benefits and How
Licensed family child care providers benefit from a tax credit for startup expenses up to $5,000. Home-based child care entrepreneurs benefit because the credit supports providers operating from a primary residence. Parents seeking local child care benefit if the credit helps more providers open or stay licensed. State child care regulators benefit indirectly if providers have a financial reason to become licensed or registered.
Who Bears the Burden and How
The Treasury Department and IRS must administer the new section 36C credit and define qualified expenses. Federal taxpayers bear the revenue cost of child care startup credits. Claiming providers must satisfy state licensing, residence, compensation, and two-child service requirements. Unlicensed caregivers do not benefit unless they meet state registration or licensing rules.
Key Provisions
- Creates a licensed family child care startup expense tax credit.
- Limits the credit to qualified expenses up to $5,000 for the current or prior taxable year.
- Requires providers to be licensed or registered and primarily operate from the taxpayer's residence.
- Requires paid care for at least two children other than the taxpayer's own children for a significant portion of the year.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
Creates a tax credit up to $5,000 for qualified startup expenses of licensed family child care providers operating primarily from the taxpayer's residence.
Key Policy Areas
Tax, Child Care, Small Business
Primary Purpose
Creates a tax credit up to $5,000 for qualified startup expenses of licensed family child care providers operating primarily from the taxpayer's residence.
Policy Domains
Resolution provisions
Identified Gains
- Licensed family child care providers
- Home-based child care entrepreneurs
- Parents seeking child care
- State child care regulators
Identified Costs
- Treasury Department
- Federal taxpayers
- Claiming providers
- Unlicensed caregivers
Sponsors
Legislative Progress
In CommitteeMr. Conaway (for himself, Mrs. Foushee, Ms. Barragán, Ms. Sánchez, …
Referred to the House Committee on Ways and Means.
Introduced in House
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Licensed family child care providers, Parents seeking child care
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology