H.R.1296 - Expanding Child Care Access Act of 2025 (119th Congress)
Summary
H.R.1296, the Expanding Child Care Access Act of 2025, proposes a refundable tax credit for qualified child care startup expenses. This credit, capped at $5,000, aims to incentivize individuals to become licensed family child care providers. The bill amends the Internal Revenue Code of 1986 to establish this credit, which would be available for expenses incurred in establishing and operating a qualified family child care provider.
Expected Effects
The bill's passage would likely increase the number of licensed family child care providers. This would provide more child care options for families. The refundable tax credit could alleviate the financial burden of starting a child care business.
Potential Benefits
- Increased availability of licensed child care services.
- Financial assistance for individuals starting family child care businesses.
- Potential for job creation in the child care sector.
- Support for working families needing affordable child care.
- Stimulation of local economies through increased spending on child care services.
Potential Disadvantages
- Potential for increased government spending due to the refundable tax credit.
- Complexity in administering and verifying qualified expenses.
- Risk of fraud or abuse in claiming the credit.
- Limited impact due to the $5,000 cap, which may not cover all startup costs.
- Sunset provision after 7 years creates uncertainty for providers.
Constitutional Alignment
The bill aligns with the General Welfare Clause (Preamble) by promoting access to child care, potentially benefiting families and communities. Congress has the power to lay and collect taxes to provide for the general welfare of the United States. The bill falls under Congress's power to enact laws related to taxation and spending.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).