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H.R. 1296House119th Congress (2025-2027)In Committee

Expanding Child Care Access Act of 2025

Sponsored by Herbert C. Conaway, Jr.Rep. Herbert C. Conaway, Jr. (D-NJ)
Introduced February 13, 2025

AI-Generated Summary

Updated November 24, 2025 at 2:43 AM UTC

The Expanding Child Care Access Act of 2025 adds a new refundable tax credit for family‑run child‑care businesses that are licensed, operate from the provider’s home, and serve at least two children who are not the provider’s own. The credit lets eligible providers claim up to $5,000 for qualified startup costs such as licensing fees, supplies, equipment, insurance, and required home improvements. It is limited to one claim per taxpayer, cannot overlap with other tax benefits, and will end seven years after the law takes effect.

Key Provisions

  • Creates a refundable tax credit of up to $5,000 for qualified family child‑care providers to cover startup costs.
  • A qualified provider must be licensed or registered by the state, operate primarily out of the taxpayer’s home, and care for at least two non‑related children.
  • Eligible startup expenses include licensing fees, supplies, liability insurance, fencing, playground equipment, furniture, employee wages (other than the taxpayer), computers, required training, and any home renovations needed for licensing.
  • The credit can be claimed only once per taxpayer and cannot be taken for expenses that are already deductible or credited elsewhere.
  • The credit expires seven years after the law’s enactment.

Legislative Activity

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1 earlier action
HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

February 13, 2025

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HouseIntro Referral

Introduced in House

February 13, 2025

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

February 13, 2025

Bill Text

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Introduced in HouseIssued February 13, 2025

I

119th CONGRESS

1st Session

H. R. 1296

IN THE HOUSE OF REPRESENTATIVES

February 13, 2025

Mr. Conaway (for himself, Mrs. Foushee, Ms. Barragán, Ms. Sánchez, Ms. Pressley, Ms. Chu, Ms. Titus, Ms. Norton, Ms. Ross, Ms. Brownley, Mr. Takano, Mr. Frost, Mr. Casten, Mrs. Watson Coleman, Mrs. Ramirez, Ms. Perez, Ms. Garcia of Texas, Mr. Carson, Mr. Carbajal, Mr. Garcia of California, Mrs. Hayes, Mr. Peters, Ms. Tokuda, Mr. Johnson of Georgia, Ms. Bynum, Ms. McDonald Rivet, Ms. Salinas, Mr. Ruiz, Mrs. McIver, and Mrs. Cherfilus-McCormick) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to establish a refundable credit for qualified child care startup expenses.

1.

Short title

This Act may be cited as the Expanding Child Care Access Act of 2025.

2.

Licensed family child care credit

(a)

In general

Subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 36B the following new section:

36C.

Licensed family child care credit

(a)

In general

In the case of a qualified taxpayer, there shall be allowed as a credit against the tax imposed by this subtitle for any taxable year an amount equal to so much of the qualified child care startup expenses of the taxpayer for such taxable year or for the preceding taxable year as do not exceed $5,000.

(b)

Qualified taxpayer

For purposes of this section, the term qualified taxpayer means, with respect to a taxable year, a taxpayer that operates a qualified family child care provider.

(c)

Qualified family child care provider

For purposes of this section, the term qualified family child care provider means a family child care provider that, with respect to a taxable year—

(1)

provides child care services for compensation that, as of the last day of such taxable year, is licensed or registered under State law and satisfies State and local requirements applicable to the child care services it provides,

(2)

primarily provides child care at the taxpayer’s primary residence, and

(3)

provided child care services to not less than 2 children (excluding children of such taxpayer) for a significant portion of such taxable year.

(d)

Qualified child care startup expenses

For purposes of this section, the term qualified child care startup expenses means amounts paid or incurred for any of the following in order to establish and operate a qualified family child care provider:

(1)

Child care licensing fees.

(2)

Child care supplies including diapers, food, toys, and learning materials.

(3)

Liability insurance.

(4)

Fencing and installation of such fencing.

(5)

Outdoor playground equipment and installation of such equipment.

(6)

Furniture necessary to provide child care.

(7)

Salary of an employee other than the taxpayer.

(8)

Printer and computers.

(9)

Professional training required as a condition of State licensure or registration.

(10)

Remediation or renovation of the taxpayer’s primary residence required as a condition of State licensure or registration.

(e)

Limitations

No credit shall be allowed under subsection (a) to any taxpayer to whom a credit was allowed under such subsection in any other taxable year.

(f)

Denial of double benefit

No credit shall be allowed under subsection (a) for any expense for which a deduction or credit is allowed under any other provision of this chapter.

(g)

Regulations

The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including regulations relating to such information reporting and coordination with state and local licensing or registration entities as the Secretary determines appropriate.

(h)

Sunset

No credit shall be allowed under subsection (a) for any taxable year beginning after the date that is 7 years after the date of the enactment of this section.

.

(b)

Conforming amendment

Section 1324(b)(2) of title 31, United States Code, is amended by inserting 36C, after 36B,.

(c)

Clerical amendment

The table of sections for subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 36B the following new item:

Sec. 36C. Licensed family child care credit.

.

(d)

Effective date

The amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act.