Child Care Availability and Affordability Act

Bill 119 HR 1827, also known as the "Child Care Tax Credit Expansion Act," aims to make changes to the Internal Revenue Code of 1986 in order to increase the benefits available to working parents for child care expenses. The bill proposes to expand both the employer-provided child care credit and the dependent care assistance exclusion.

The employer-provided child care credit allows employers to receive a tax credit for providing child care services to their employees. This credit helps offset the costs associated with providing child care, making it more affordable for working parents. The bill seeks to expand this credit, potentially increasing the amount that employers can claim for providing child care services.

Additionally, the bill aims to expand the dependent care assistance exclusion, which allows employees to exclude a certain amount of employer-provided child care assistance from their taxable income. This exclusion helps working parents save money on their taxes by reducing their taxable income. The bill proposes to increase the amount that employees can exclude from their income, providing even more financial relief for families with child care expenses. Overall, Bill 119 HR 1827 seeks to provide additional support for working parents by expanding the benefits available for child care expenses. By increasing the employer-provided child care credit and the dependent care assistance exclusion, the bill aims to make child care more affordable for families and help parents balance work and family responsibilities.