Child and Dependent Care Tax Credit Enhancement Act of 2025

H.R. 2994, the Child and Dependent Care Tax Credit Enhancement Act of 2025, is a tax bill introduced by Representative Danny K. Davis (D-IL) that would modify the existing child and dependent care tax credit. The bill is currently in the early stages of the legislative process, having been introduced in the House on April 24, 2025, and referred to committee for consideration.

If enacted, this bill would enhance the tax credit available to families who pay for childcare or dependent care expenses. The child and dependent care tax credit helps offset some of the costs families incur for care services, allowing them to claim a percentage of qualifying expenses on their federal income taxes. By expanding this credit, the bill would potentially increase the tax relief available to working families and caregivers, making childcare more affordable for households that rely on paid care services.

The bill has not yet been voted on by the full House and remains under committee review. Its ultimate impact would depend on the specific enhancements proposed and whether it gains sufficient support to advance through the legislative process.