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Congressional Research Service Reports

The Congressional Research Service (CRS) creates nonpartisan and objective reports designed to support Congress through comprehensive and reliable legislative research and analysis. CRS reports cover a wide range of important and timely topics including child care issues and tax credits. Below reports can be found about tax credits relating to child care such as the Child and Dependent Care Tax Credit (CDCTC), the Dependent Care Assistance Program (DCAP), and 45F.

Dependent Care: Current Tax Benefits and Legislative Issues

  • February 4, 2015: Discusses tax treatment of dependent care expenses under two provisions (CDCTC and DCAP) and options for changing those policies. 

The Child and Dependent Care Credit: Impact of Selected Policy Options

  • December 5, 2017: Includes estimates of CDCTC under current law and estimates distributional effect of selected policy options (making the credit refundable, converting the credit into a deduction, increasing the credit rate, and increasing the maximum amount of expenses). Uses 2014 calendar year data.

Child and Dependent Care Tax Benefits: How They Work and Who Receives Them

  • Updated February 1, 2021: Provides overview of CDCTC and the exclusion for employer-sponsored child and dependent care, focusing on eligibility requirements and benefit calculations, includes summary data.

The Child and Dependent Care Tax Credit (CDCTC): Temporary Expansion for 2021 Under the American Rescue Plan Act of 2021 (ARPA; P.L. 117-2)

  • Updated May 10, 2021: Summarizes the temporary expansion of the CDCTC for 2021 (through ARPA), highlighting the credit amount for 2021 before and after temporary expansion. Includes policy considerations like the difference in benefits among socioeconomic backgrounds, the consequences of lump sum payment, concerns of improper claims, and an increase in budget deficit.

EMPLOYER-PROVIDED CHILD CARE CREDIT: Estimated Claims and Factors Limiting Wider Use

  • February 2022: GAO study on the Employer-Provided Child Care Credit using data from 2016, outlines limitations that prevent employers’ use of the credit and offers suggestions from groups interviewed.

The 45F Tax Credit for Employer-Provided Child Care

  • April 12, 2023: Provides an overview of 45F and its potential to incentivize business owners to provide child care for their employees while outlining the reasons why this credit is so underutilized and which aspects could be examined in order to increase the effectiveness of 45F.

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