Tina Smith (D-MN)
Child and Dependent Care Tax Credit Enhancement Act of 2025
A Democratic bill with 28 Democratic cosponsors · See all 29 cosponsors
Last activity — Read twice and referred to the Committee on Finance.
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
This bill, known as the "Child and Dependent Care Tax Credit Enhancement Act of 2025," aims to amend the Internal Revenue Code of 1986. It proposes to enhance the Child and Dependent Care Tax Credit and make the credit fully refundable for certain taxpayers. The legislation includes adjustments to the applicable percentage based on adjusted gross income. It also increases the dollar limits on the amount creditable. Furthermore, it establishes a special rule for married couples filing separate returns and includes an inflation adjustment mechanism.
Yes· 3 of 10
- Scored +8
Would middle-income households be better off under this?
The significant increase in credit limits offers substantial relief to middle-income families.
- Scored +8
Does this make child care cost less?
The bill directly increases the Child and Dependent Care Tax Credit limits, significantly easing the burden of childcare costs for families.
- Scored +7
Would households on low incomes be better off under this?
Making the credit fully refundable provides direct financial relief to those with lower incomes.
The opposite
No question was scored the opposite.
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 credable from $3,000 to $8,000 in paragraph (1) and from $6,000 to $16,000 in paragraph (2) under Section 2, subsection (b). This would result in higher maximum amounts for the credit.
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Refundability of Credit: Under Section 2, subsection (e), the credit is made refundable for certain individuals who have a principal place of abode in the United States for more than one-half of the taxable year. This changes how the credit is treated under subpart C.
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Inflation Protection: Section 2, subsection (d) introduces an inflation adjustment that increases the $125,000 amount and the dollar amounts in subsection (c) based on cost-of-living adjustments for calendar years beginning after 2025.
Potential Negative Impacts for People
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Income-Based Percentage Reductions: According to Section 2, subsection (a), the "applicable percentage" is reduced by 1 percentage point for each $2,000 that a taxpayer's adjusted gross income exceeds $125,000.
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Phaseout of the Percentage: Section 2, subsection (a) establishes a "phaseout percentage" of 20 percent, which is reduced by 1 percentage point for each $2,000 that the taxpayer's adjusted gross income exceeds $400,000.
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 middle-income households be better off under this? — The significant increase in credit limits offers substantial relief to middle-income families. Would households on low incomes be better off under this? — Making the credit fully refundable provides direct financial relief to those with lower incomes. Would children be better off under this? — The bill supports the families of children by making childcare more affordable. Would people in middle age be better off under this? — Middle-aged taxpayers with dependents will see significant tax savings. Would women be better off under this? — Improved childcare affordability can support women's workforce participation. Would people in their twenties and thirties be better off under this? — Younger parents often face high childcare costs and will benefit from the increased credit. Would high-income households be better off under this? — High-income households still benefit, though the credit begins to phase out for very high earners.
- Social Issues And Justice
- Does this make child care cost less? — The bill directly increases the Child and Dependent Care Tax Credit limits, significantly easing the burden of childcare costs for families. Is this likely to lift people out of poverty? — By making the credit fully refundable, the bill provides more direct financial support to low-income households.
- Economy And Finance
- Does this cut taxes for middle-income families? — The bill significantly increases the maximum credit amounts for child and dependent care, providing substantial tax relief for middle-income families.
- 4/10/2025
- Read twice and referred to the Committee on Finance.
- 29 Cosponsors added.
- Introduced in Senate
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.
Tammy BaldwinDemocrat · Wisconsin
Michael BennetDemocrat · Colorado
Richard BlumenthalDemocrat · Connecticut
Cory BookerDemocrat · New Jersey
Maria CantwellDemocrat · Washington
Richard DurbinDemocrat · Illinois
Tammy DuckworthDemocrat · Illinois
John FettermanDemocrat · Pennsylvania
Kirsten GillibrandDemocrat · New York
Ruben GallegoDemocrat · Arizona
Mazie HironoDemocrat · Hawaii
Martin HeinrichDemocrat · New Mexico
Amy KlobucharDemocrat · Minnesota
Angus KingIndependent · Maine
Ben LujánDemocrat · New Mexico
Patty MurrayDemocrat · Washington
Christopher MurphyDemocrat · Connecticut
Jeff MerkleyDemocrat · Oregon
John ReedDemocrat · Rhode Island
Charles SchumerDemocrat · New York
Adam SchiffDemocrat · California
Jeanne ShaheenDemocrat · New Hampshire
Brian SchatzDemocrat · Hawaii
Elissa SlotkinDemocrat · Michigan
Chris Van HollenDemocrat · Maryland
Ron WydenDemocrat · Oregon
Raphael WarnockDemocrat · Georgia
Peter WelchDemocrat · Vermont
Sheldon WhitehouseDemocrat · Rhode Island