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.
Summary
What This Bill Does
H.R. 1426 changes two child care tax benefits. It doubles the household and dependent care services credit expense limits from $3,000 to $6,000 for one qualifying individual and from $6,000 to $12,000 for two or more qualifying individuals. It also raises the section 45F employer-provided child care credit cap from $150,000 to $400,000. The bill therefore helps families claim more child or dependent care costs and gives employers a larger incentive to provide or support child care for workers.
Who Benefits and How
Working parents benefit because more dependent care expenses can count toward the household and dependent care services credit. Families with multiple dependents benefit because the two-or-more expense limit rises to $12,000. Employers providing child care benefit because the maximum employer-provided child care credit rises to $400,000. Child care providers benefit indirectly if larger tax incentives increase demand for care slots.
Who Bears the Burden and How
Federal taxpayers bear the revenue cost of larger dependent care and employer child care credits. The Internal Revenue Service must update forms and guidance for the higher expense limits and credit cap. Budget writers must account for lower tax receipts from expanded child care credits. Employers claiming section 45F credits must document qualified child care expenditures against a higher cap.
Key Provisions
- Amends the dependent care credit to increase the one-person expense limit to $6,000.
- Amends the dependent care credit to increase the two-or-more-person expense limit to $12,000.
- Amends the employer-provided child care credit cap to $400,000.
- Applies both tax changes to taxable years after enactment.
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
Amends the dependent care tax credit by doubling eligible expense limits to $6,000 and $12,000 and raises the employer-provided child care credit cap from $150,000 to $400,000.
Key Policy Areas
Tax, Child Care, Families
Primary Purpose
Amends the dependent care tax credit by doubling eligible expense limits to $6,000 and $12,000 and raises the employer-provided child care credit cap from $150,000 to $400,000.
Policy Domains
Resolution provisions
Identified Gains
- Working parents
- Families with multiple dependents
- Employer child care sponsors
- Child care providers
Identified Costs
- Federal taxpayers
- Internal Revenue Service
- Budget writers
- Credit-claiming employers
Legislative Progress
In CommitteeMr. Mackenzie introduced the following bill; which was referred to …
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.
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