Danny Davis (D-IL)
Child and Dependent Care Tax Credit Enhancement Act of 2025
A Democratic bill with 27 Democratic cosponsors · See all 27 cosponsors
Last activity — Referred to the House Committee on Ways and Means.
In committee
Introduced and handed to a committee in the chamber it started in.
The committee holds it, and most bills are never heard from again. A hearing or a committee vote would be news; silence is the usual outcome, and it kills the bill without anyone voting against it.
Its path through Congress
- Introduced
- In Committee
What this bill would do
The Child and Dependent Care Tax Credit Enhancement Act of 2025 aims to amend the Internal Revenue Code of 1986. The bill proposes changes to the Child and Dependent Care Tax Credit to enhance its impact. It includes adjustments to the applicable percentage based on a taxpayer's adjusted gross income. The bill also increases the dollar limits on the amount of the credit that can be claimed. Furthermore, it establishes a special rule for married couples who file separate returns. Finally, the act makes the credit fully refundable for certain individuals.
Yes· 3 of 7
- Scored +8
Does this make child care cost less?
The bill increases the maximum amount of the tax credit available for child and dependent care expenses.
- Scored +7
Would households on low incomes be better off under this?
The bill makes the credit fully refundable and increases the dollar limits, providing greater relief to those with lower incomes.
- Scored +7
Would middle-income households be better off under this?
The higher dollar limits for the tax credit benefit middle-income families with childcare expenses.
The opposite
- Scored -3
Does this reduce what the federal government spends?
Increasing the tax credit and making it refundable increases federal outlays.
- Scored -2
Would high-income households be better off under this?
The bill implements an income-based reduction in the applicable percentage for those earning over $125,000.
Who it would affect, and how
Potential Positive Impacts for People
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Increased Credit Limits: The bill increases the dollar limit on the amount creditable from $3,000 to $8,000 for certain individuals, and from $6,000 to $16,000 for others, as specified in Section 2(b).
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Increased Refundability: The credit is made refundable for certain individuals who have their principal place of abode in the United States for more than one-half of the taxable year, according to Section 2(e).
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Inflation Protections: The $125,000 amount and the dollar amounts in subsection (c) will be increased for calendar years beginning after 2025 to account for inflation, as detailed in Section 2(d).
Potential Negative Impacts for People
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Income-Based Percentage Reductions: The applicable percentage is reduced by 1 percentage point for every $2,000 that a taxpayer's adjusted gross income exceeds $125,000, which is described in Section 2(a).
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Phaseout of Percentages: The phaseout percentage is reduced by 1 percentage point for each $2,000 that a taxpayer's adjusted gross income exceeds $400,000, as noted in Section 2(a).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Tap or hover a score for the reason it gave.
- Demographic And Interest Groups
- Would households on low incomes be better off under this? — The bill makes the credit fully refundable and increases the dollar limits, providing greater relief to those with lower incomes. Would middle-income households be better off under this? — The higher dollar limits for the tax credit benefit middle-income families with childcare expenses. Would children be better off under this? — Increased childcare tax credits can help support the care of children. Would women be better off under this? — Increased childcare affordability can support women's participation in the workforce. Would high-income households be better off under this? — The bill implements an income-based reduction in the applicable percentage for those earning over $125,000.
- Social Issues And Justice
- Does this make child care cost less? — The bill increases the maximum amount of the tax credit available for child and dependent care expenses. Is this likely to lift people out of poverty? — The credit is made fully refundable, which provides direct financial relief to lower-income families.
- Economy And Finance
- Does this cut taxes for middle-income families? — The bill significantly increases the dollar limits on the Child and Dependent Care Tax Credit for many taxpayers. Does this reduce what the federal government spends? — Increasing the tax credit and making it refundable increases federal outlays.
- 5/29/2026
- 1 Cosponsor added.
- 10/24/2025
- 1 Cosponsor added.
- 9/2/2025
- 1 Cosponsor added.
- 7/10/2025
- 1 Cosponsor added.
- 6/20/2025
- 1 Cosponsor added.
- 6/10/2025
- 1 Cosponsor added.
- 4/28/2025
- 4 Cosponsors added.
- 4/24/2025
- Referred to the House Committee on Ways and Means.
- 17 Cosponsors added.
- Introduced in House
2 bills Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Julia BrownleyDemocrat · California
Donald BeyerDemocrat · Virginia
Brendan BoyleDemocrat · Pennsylvania
Emanuel CleaverDemocrat · Missouri
André CarsonDemocrat · Indiana
Gerald ConnollyDemocrat · Virginia
Judy ChuDemocrat · California
Suzan DelBeneDemocrat · Washington
Dwight EvansDemocrat · Pennsylvania
Cleo FieldsDemocrat · Louisiana
Jimmy GomezDemocrat · California
Ro KhannaDemocrat · California
John LarsonDemocrat · Connecticut
George LatimerDemocrat · New York
Betty McCollumDemocrat · Minnesota
Gwen MooreDemocrat · Wisconsin
Seth MagazinerDemocrat · Rhode Island
Kelly MorrisonDemocrat · Minnesota
Kristen McDonald RivetDemocrat · Michigan
Eleanor NortonDemocrat · District of Columbia
Johnny OlszewskiDemocrat · Maryland
Jimmy PanettaDemocrat · California
Delia RamirezDemocrat · Illinois
Linda SánchezDemocrat · California
Terri SewellDemocrat · Alabama
Andrea SalinasDemocrat · Oregon
Frederica WilsonDemocrat · Florida