A Statement from First Five Years Fund (FFYF) Executive Director Kris Perry:
“We applaud Sen. Bob Casey for his leadership today on expanding the Child and Dependent Care Tax Credit (CDCTC). Sen. Casey’s proposal builds upon President Obama’s similar proposal to help our nation’s children and families have access to the affordable, high-quality child care needed to give children a strong start in life while also supporting working parents through a commonsense, refundable tax credit.
“Every day, parents and families across America are forced to sacrifice their earning potential because they lack access to affordable, high-quality care for their children. In many states, quality child care costs more than college tuition, leaving many working parents without any choice but to either stay home or leave their children in inadequate settings.
“Congress would be wise to prioritize expansion of the CDCTC as a support for hard-working families, just as they did with the overwhelmingly bipartisan reauthorization of the Child Care Development Block Grant this past fall.”
Sen. Casey’s proposal would:
- Make the full CDCTC credit available to most working families:The bill would make the full credit available to families with income under $120,000. Currently the phase out of the credit begins at $15,000 of income.
- Provide a bonus for young children under five:The bill would increase the credit from $1,500 to $3,000 per child for kids under five.
- Ensure lower income families see a benefit:The bill would make the credit fully refundable to make sure those with the greatest need see a benefit.
- Retain the value over time: The bill would index benefits to inflation to ensure they keep up with ever-growing costs.
About the First Five Years Fund
The First Five Years Fund helps America achieve better results in education, health and economic productivity through investments in quality early childhood education programs for disadvantaged children. FFYF provides knowledge, data, and advocacy – persuading federal policymakers to make investments in the first five years of a child’s life that create greater returns for all.