U.S. Rep. Brian Fitzpatrick (R-PA) cosponsored bipartisan legislation on Tuesday that seeks to increase long-overdue tax provisions that will bolster access to quality and affordable child care.
“The skyrocketing cost of child care impacts not only the budgets but choices of working families in PA-1,” Rep. Fitzpatrick said. “No parent should be forced to choose between their family’s financial security and a quality future for their children.”
Working parents with young children are now spending 24 percent of their income on child care, according to a recent report cited by Rep. Fitzpatrick’s office.
“Our bipartisan Affordable Child Care Act delivers a bold solution by overhauling critical tax provisions—doubling three key tax credits—to ease this burden and empower families with the financial freedom they need to secure high-quality childcare,” Rep. Fitzpatrick said.
The Affordable Child Care Act, H.R. 1408, doubles three tax credits that lessen the financial burden of ever-increasing child care costs. According to a bill summary provided by the congressman’s office, the tax credits adjusted under the legislation would include:
- The Child and Dependent Care Credit, which would be doubled to $6,000 for one dependent and $12,000 for two or more;
- The Employer-Provided Child Care Credit, which encourages businesses to invest in child care for their employees by doubling the credit to $300,000 per year, covering 25 percent of qualified child care facility and 10 percent of child care resource and referral expenses; and
- Dependent Care Flexible Spending Account Contributions, which empowers parents to save more pre-tax dollars for child care by raising the contribution limit to $10,000.
Along with Rep. Fitzpatrick, the legislation was introduced by bill sponsor U.S. Rep. Sharice Davids (D-KS).
H.R. 1408 has been endorsed by Child Care Aware America, Early Care & Education Consortium, First Five Years Fund, Learning Care Group, and Advocacy and Campaigns for Save the Children.