Us Congress 2025-2026 Regular Session

Us Congress House Bill HB1426

Introduced
2/18/25  

Caption

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.

Impact

The provisions of HB1426 are expected to have a significant impact on state tax laws concerning deductions and credits available for families and employers who support childcare services. By increasing the credit amounts, the bill may provide substantial financial relief for families, allowing for better access to quality childcare. This can particularly benefit lower to middle-income households that often struggle with childcare expenses, thereby potentially increasing workforce participation among these families.

Summary

House Bill 1426 aims to amend the Internal Revenue Code of 1986 by increasing the permissible tax credits for household and dependent care services, as well as for employer-provided child care. Specifically, the bill proposes to raise the credit amounts for dependent care expenses from $3,000 to $6,000 for one qualifying individual, and from $6,000 to $12,000 for two or more qualifying individuals. Furthermore, the employer-provided child care credit limit will be increased from $150,000 to $400,000, promoting enhanced support for working families and their childcare needs.

Contention

While there is a consensus on the necessity of supporting child care services, potential points of contention may arise regarding the fiscal implications of the increased credits. Critics may argue about the impact on state revenues and whether these changes could lead to an overextension of credits that might not be sustainable long-term. Additionally, the effectiveness of such tax credits in addressing childcare access equitably across various demographics could be scrutinized, potentially sparking debate on alternative or supplementary approaches to childcare support.

Companion Bills

No companion bills found.

Previously Filed As

US HB3707

To amend the Internal Revenue Code of 1986 to provide a tax credit for expenses for household and elder care services necessary for gainful employment.

US HB10373

To amend the Internal Revenue Code of 1986 to create a tax credit for nurse preceptors.

US HB10429

To amend the Internal Revenue Code of 1986 to establish a State and local general sales tax credit for small businesses.

US SB5607

A bill to amend the Internal Revenue Code of 1986 to enhance the rehabilitation credit for buildings in rural areas.

US HB10516

To amend the Internal Revenue Code of 1986 to repeal the credit for new clean vehicles, and for other purposes.

US HB2510

To amend the Internal Revenue Code of 1986 to make the credit for the adoption of special needs children refundable.

US HB9479

To amend the Internal Revenue Code of 1986 to establish a refundable credit for expenses incurred for in vitro fertilization.

US HB5207

To amend the Internal Revenue Code of 1986 to add a new medical research component to the credit for increasing research activities.

US HB10494

To amend the Internal Revenue Code of 1986 to establish a tax credit to incentivize the purchase of American agricultural commodities.

US SB4915

A bill to amend the Internal Revenue Code of 1986 to modify the low-income housing credit and to reauthorize and reform the Generalized System of Preferences, and for other purposes.

Similar Bills

No similar bills found.