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Work Underway to Make the
Child Tax Credit Permanent
On January 24, 2024, U.S. Senators Bob Casey (D-PA), Ron Wyden (D-OR), and Patty Murray (D-WA) introduced the Child and Dependent Care Tax Credit Enhancement Act of 2024, referred to as the CDCTC Enhancement Act. This proposed bill is aimed to support working families in the U.S. with young children, under the age of 13, by alleviating the steep costs associated with child care.
If this Bill is passed, it will “amend the Internal Revenue Code of 1986 to make the CDCTC Enhancement Act fully refundable for some taxpayers” and offset the costs of child care for others, dependent on the family’s adjusted gross income (2024).
Families saw the immense impact this tax credit provided them when the CDCTC was temporarily enacted into law under the American Rescue Plan Act (2021) during the height of the COVID-19 pandemic. Unlike the previous iterations of the CDCTC, the CDCTC Enhancement Act will permanently expand child care tax credits and will automatically adjust to account for inflation.
Families across the U.S. have experienced the burden associated with inflation. According to the First Five Years Fund, “on average, one out of 5 families spend $36,000 on child care in a year” (2024).
The passing of the CDCTC Enhancement Act will relieve financial stress on working families and ensure they can afford high-quality child care while working. The Council for Professional Recognition fully supports the Child and Dependent Care Tax Credit Enhancement Act of 2024. We urge Congress to pass this critical legislation that supports families, the early care and education field, and will help to stimulate the U.S. economy.
For a deeper dive into Family Tax Credits and the options under consideration, check out the First Five Years Fund’s resource here.
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