YourVoice.Now Summary
Your MoneyTransparency & AccountabilityLicensed home child care providers could get up to $5,000 back at tax time — even with no tax bill.
Your Money
It would cover startup costs — license fees, supplies, insurance, fencing, playground gear, and training the state requires. You would need a state license. You would also need at least two children in your care, not counting your own.
Most tax credits only shrink what you owe. This one would be sent to you as a refund, so a provider with a small tax bill would still get the full amount.
Transparency & Accountability
No credit could be claimed for tax years starting more than seven years after the bill becomes law. Congress would have to pass a new law to keep it going.
More about this bill
If you run a licensed child care business out of your home, you could get up to $5,000 back at tax time. The money would cover startup costs like licensing fees, fencing, playground equipment, insurance, furniture, and required training. Home repairs your state demands for a license would count too. You could claim it once, for costs paid in that tax year or the year before. To qualify, you would need a state license or registration. You would also need to care for at least two children who are not your own, mostly in your own home. The credit would be refundable, so you would get the full amount even if you owe no income tax. It would apply to costs paid after the bill becomes law. The credit would end seven years after that.
Congressional Summary
Expanding Child Care Access Act of 2025 This bill establishes a temporary (for seven years) refundable tax credit for certain expenses incurred to establish and operate a qualified family child care provider. (Conditions and limitations apply.) Under the bill, a qualified family child care provider is a child care provider that provides child care services at the taxpayer's primary residence for at least two children (other than the children of such taxpayer) for a significant portion of the tax year, receives compensation for such child care services, and is licensed or registered to provide such child care services by the state in which such services are provided. The bill allows a taxpayer that operates a qualified family child care provider to claim a tax credit of up to $5,000 for child care licensing fees; child care supplies (e.g., diapers, food, toys, and learning materials); liability insurance; fencing (including installation costs); outdoor playground equipment (including installation costs); furniture necessary to provide child care; the salary of an employee (other than the taxpayer); printers and computers; professional training required by the state for licensing or registration; and remediation or renovation of a primary residence to meet state licensing or registration requirements. The tax credit may only be claimed once and may not be claimed for expenses for which another tax deduction or tax credit is allowed. Finally, the bill requires the Internal Revenue Service to issue guidance on the tax credit, including guidance related to information reporting requirements.
Legislative Subjects
Details
- Congress
- 119th
- Chamber
- Status
- in committee
- Action
- Action Date
- 2025-02-13
- Date Added
- 2026-03-31
- Source
- Congress.gov →
Record c0f9e45c-cbaa-4abe-9e60-216b707ff53b · JSON
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