H.R. 1426: 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.

This bill aims to amend the Internal Revenue Code of 1986 to increase tax credits related to household and dependent care services as well as employer-provided child care. Here are the key points:

1. Increase in Credit for Household and Dependent Care Services

• The bill proposes to increase the maximum amount of expenses eligible for a credit for household and dependent care services. Specifically:
  • The current limit of $3,000 per qualifying individual will be raised to $6,000.
  • The current limit of $6,000 for two or more qualifying individuals will be increased to $12,000.
• This change will apply to taxable years starting after the bill is enacted.

2. Increase in Employer-Provisioned Child Care Credit

• The bill also aims to increase the limit on the employer-provided child care credit, which allows businesses to claim a tax credit for providing child care facilities or services to their employees.
  • The current maximum cap of $150,000 for the credit will be increased to $400,000.
• Similar to the household and dependent care credit, this amendment will also take effect for taxable years beginning after the bill is enacted.

Overall Purpose

The overarching goal of the bill is to provide more financial support to families for child care services and to incentivize employers to offer child care benefits, thereby potentially making it easier for parents to manage work and family responsibilities.

Relevant Companies

• None found