Child care is not a luxury for American families—it’s a necessity.
Yet the costs associated with quality child care are rapidly outpacing other expenses faced by families, including the cost of higher education.
As Congress and the administration consider comprehensive tax reforms, there is a significant opportunity to update the tax code so that existing incentives reflect the modern cost of child care, and to add new and innovative strategies that encourage investment in high-quality care.
The overwhelming research shows increasing access to a high-quality early childhood education is one of the most effective investments for American families and communities, generating outcomes that are proven to set children up to succeed in school and become productive adults later in life.
While there are a handful of tax credits and deductions that support families with children, only the Child and Dependent Care Tax Credit (CDCTC) was designed to help working parents with the cost of work-related child care expenses. Unfortunately, the CDCTC is outdated and can’t meet the current needs of working families. Congress can change that.
Read more about the importance of maintaining the CDCTC, expanding it, and making it refundable to reach the families who need it most.