Bill Expands Existing Credit to Help Parents Stay in the Workforce
Washington, DC - Today, Colorado U.S. Senator Michael Bennet signed on as a cosponsor to The Helping Working Families Afford Child Care Act. The bill, introduced by Senator Patty Murray, helps families pay for the increasing cost of child care by expanding and increasing the Child and Dependent Care Tax Credit (CDCTC). The CDCTC, enacted in 1976, was intended to help offset the cost of child care for working class families, but unfortunately has not kept up with the rising cost of care.
"The cost of child care can be insurmountable for many hard working families. It can even force parents out of the workforce entirely, creating even greater economic hardships," Bennet said. "In many parts of the of the country, including Colorado, the full-time cost of child care is close to $10,000 per year. We need to do more to help middle and low-income families. This bill would make it easier for families to afford quality care and increase their financial security, while strengthening our workforce."
Under current law, families are eligible for a CDCTC to between 20 percent and 35 percent of care expenses capped at $3,000 for one child and $6,000 for two or more. This bill raises the amount of the credit to $8,000 for one child and $16,000 for two or more, addressing inflation and better aligning with the costs faced by parents. This measure also makes the credit available to the struggling families who need it the most by making the credit fully refundable. Finally, it adjusts the income cap for the credit, which currently allows millionaires to claim the credit, to ensure it's going to the families that need it.
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