To amend the Internal Revenue Code of 1986 to increase the amount allowed as a credit under the expenses for household and dependent care services credit and the employer-provided child care credit.

# HR 1426 Summary **What the Bill Would Do** HR 1426 proposes to increase tax credits that help families and employers pay for childcare and dependent care services. Specifically, it would increase two existing tax benefits: the dependent care credit (which helps individual taxpayers offset childcare expenses) and the employer-provided child care credit (which incentivizes companies to offer childcare benefits to employees). By increasing these credits, the bill would reduce the out-of-pocket costs for families using childcare services and make it more financially attractive for employers to provide childcare support. **Who It Affects** This bill would primarily benefit working families with young children or dependents who need care, as well as employers who currently provide or would consider providing childcare services.

Families with lower to middle incomes would likely see the most significant financial impact, as the tax credits would offset a larger portion of their childcare expenses. Small and large employers offering childcare benefits would also benefit from the expanded employer tax credit. **Current Status** The bill is currently in committee, meaning it has been introduced but has not yet moved forward for a full vote in the House. The specific dollar amounts by which the credits would be increased are not detailed in the available information, and the bill has not yet advanced in the legislative process.