Us Congress 2025-2026 Regular Session

Us Congress House Bill HB2994 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	I
2	2	119THCONGRESS
3	3	1
4	4	STSESSION H. R. 2994
5	5	To amend the Internal Revenue Code of 1986 to enhance the Child and
6	6	Dependent Care Tax Credit and make the credit fully refundable for
7	7	certain taxpayers.
8	8	IN THE HOUSE OF REPRESENTATIVES
9	9	APRIL24, 2025
10	10	Mr. D
11	11	AVISof Illinois (for himself, Ms. DELBENE, Ms. SA´NCHEZ, Mr. BEYER,
12	12	Ms. M
13	13	OOREof Wisconsin, Ms. CHU, Ms. SEWELL, Mr. BOYLEof Penn-
14	14	sylvania, Ms. M
15	15	CCOLLUM, Ms. BROWNLEY, Mr. LARSONof Connecticut,
16	16	Ms. W
17	17	ILSONof Florida, Ms. NORTON, Mr. CLEAVER, Mr. CARSON, Mr.
18	18	K
19	19	HANNA, Mr. CONNOLLY, and Mr. PANETTA) introduced the following
20	20	bill; which was referred to the Committee on Ways and Means
21	21	A BILL
22	22	To amend the Internal Revenue Code of 1986 to enhance
23	23	the Child and Dependent Care Tax Credit and make
24	24	the credit fully refundable for certain taxpayers.
25	25	Be it enacted by the Senate and House of Representa-1
26	26	tives of the United States of America in Congress assembled, 2
27	27	SECTION 1. SHORT TITLE. 3
28	28	This Act may be cited as the ‘‘Child and Dependent 4
29	29	Care Tax Credit Enhancement Act of 2025’’. 5
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32	32	•HR 2994 IH
33	33	SEC. 2. ENHANCEMENT OF CHILD AND DEPENDENT CARE 1
34	34	TAX CREDIT. 2
35	35	(a) I
36	36	NGENERAL.—Paragraph (2) of section 21(a) of 3
37	37	the Internal Revenue Code of 1986 is amended to read 4
38	38	as follows: 5
39	39	‘‘(2) A
40	40	PPLICABLE PERCENTAGE .— 6
41	41	‘‘(A) I
42	42	N GENERAL.—For purposes of para-7
43	43	graph (1), the term ‘applicable percentage’ 8
44	44	means 50 percent reduced (but not below the 9
45	45	phaseout percentage) by 1 percentage point for 10
46	46	each $2,000 (or fraction thereof) by which the 11
47	47	taxpayer’s adjusted gross income for the taxable 12
48	48	year exceeds $125,000. 13
49	49	‘‘(B) P
50	50	HASEOUT PERCENTAGE .—For pur-14
51	51	poses of subparagraph (A), the term ‘phaseout 15
52	52	percentage’ means 20 percent reduced (but not 16
53	53	below zero) by 1 percentage point for each 17
54	54	$2,000 (or fraction thereof) by which the tax-18
55	55	payer’s adjusted gross income for the taxable 19
56	56	year exceeds $400,000.’’. 20
57	57	(b) I
58	58	NCREASE INDOLLARLIMIT ONAMOUNTCRED-21
59	59	ITABLE.—Subsection (c) of section 21 of the Internal Rev-22
60	60	enue Code of 1986 is amended— 23
61	61	(1) in paragraph (1), by striking ‘‘$3,000’’ and 24
62	62	inserting ‘‘$8,000’’; and 25
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65	65	•HR 2994 IH
66	66	(2) in paragraph (2), by striking ‘‘$6,000’’ and 1
67	67	inserting ‘‘$16,000’’. 2
68	68	(c) S
69	69	PECIALRULE FORMARRIEDCOUPLESFILING 3
70	70	S
71	71	EPARATERETURNS.—Paragraph (2) of section 21(e) of 4
72	72	the Internal Revenue Code of 1986 is amended to read 5
73	73	as follows: 6
74	74	‘‘(2) M
75	75	ARRIED COUPLES FILING SEPARATE RE -7
76	76	TURNS.— 8
77	77	‘‘(A) I
78	78	N GENERAL.—In the case of married 9
79	79	individuals who do not file a joint return for the 10
80	80	taxable year— 11
81	81	‘‘(i) the applicable percentage under 12
82	82	subsection (a)(2) and the number of quali-13
83	83	fying individuals and aggregate amount ex-14
84	84	cludable under section 129 for purposes of 15
85	85	subsection (c) shall be determined with re-16
86	86	spect to each such individual as if the indi-17
87	87	vidual had filed a joint return with the in-18
88	88	dividual’s spouse, and 19
89	89	‘‘(ii) the aggregate amount of the 20
90	90	credits allowed under this section for such 21
91	91	taxable year with respect to both spouses 22
92	92	shall not exceed the amount which would 23
93	93	have been allowed under this section if the 24
94	94	individuals had filed a joint return. 25
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97	97	•HR 2994 IH
98	98	‘‘(B) REGULATIONS.—The Secretary shall 1
99	99	prescribe such regulations or other guidance as 2
100	100	is necessary to carry out the purposes of this 3
101	101	subsection.’’. 4
102	102	(d) A
103	103	DJUSTMENT FOR INFLATION.—Section 21 of 5
104	104	the Internal Revenue Code of 1986 is amended by adding 6
105	105	at the end the following new subsection: 7
106	106	‘‘(i) I
107	107	NFLATIONADJUSTMENT.— 8
108	108	‘‘(1) I
109	109	N GENERAL.—In the case of a calendar 9
110	110	year beginning after 2025, the $125,000 amount in 10
111	111	paragraph (2) of subsection (a) and the dollar 11
112	112	amounts in subsection (c) shall each be increased by 12
113	113	an amount equal to— 13
114	114	‘‘(A) such dollar amount, multiplied by 14
115	115	‘‘(B) the cost-of-living adjustment deter-15
116	116	mined under section 1(f)(3) for the calendar 16
117	117	year in which the taxable year begins, deter-17
118	118	mined by substituting ‘calendar year 2024’ for 18
119	119	‘calendar year 2016’ in subparagraph (A)(ii) 19
120	120	thereof. 20
121	121	‘‘(2) R
122	122	OUNDING.—If any dollar amount, after 21
123	123	being increased under paragraph (1), is not a mul-22
124	124	tiple of $100, such dollar amount shall be rounded 23
125	125	to the next lowest multiple of $100.’’. 24
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128	128	•HR 2994 IH
129	129	(e) CREDITMADEREFUNDABLE.—Section 21(g) of 1
130	130	the Internal Revenue Code of 1986 is amended to read 2
131	131	as follows: 3
132	132	‘‘(g) C
133	133	REDITMADEREFUNDABLE FOR CERTAININ-4
134	134	DIVIDUALS.—If the taxpayer (in the case of a joint return, 5
135	135	either spouse) has a principal place of abode in the United 6
136	136	States (determined as provided in section 32) for more 7
137	137	than one-half of the taxable year, the credit allowed under 8
138	138	subsection (a) shall be treated as a credit allowed under 9
139	139	subpart C (and not allowed under this subpart).’’. 10
140	140	(f) E
141	141	FFECTIVEDATE.—The amendments made by 11
142	142	this section shall apply to taxable years beginning after 12
143	143	December 31, 2024. 13
144	144	Æ
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