Expanding Child Care Access Act of 2025

Financial assistance for childcare providers: Qualified taxpayers who operate a qualified family child care provider can receive a credit of up to $5,000 for startup expenses (Section 2(a)).

Coverage of essential business costs: The credit can be used for various startup needs such as licensing fees, supplies like diapers and food, liability insurance, fencing, playground equipment, furniture, employee salaries, computers, professional training, and required home renovations (Section 2(d)).

Support for home-based businesses: The credit is available to providers who primarily provide child care at their primary residence (Section 2(c)(2)).

One-time use limitation: The credit cannot be claimed by a taxpayer if they have already received the credit in a previous taxable year (Section 2(e)).

Restriction on duplicate benefits: A taxpayer cannot claim this credit for any expense that is already covered by another deduction or credit (Section 2(f)).

Expiration of the benefit: The credit is subject to a sunset provision, meaning no credit will be allowed for any taxable year beginning after seven years from the date of enactment (Section 2(h)).