# Plain Language Summary of H.R. 1426

This bill makes it easier for working parents to get tax breaks when they pay for childcare. Right now, the government offers two different tax credits to help with childcare costs, but the limits on how much you can claim are pretty low. This bill doubles those limits so more families can get meaningful help.

The first change affects the childcare tax credit that most working parents use. Currently, if you pay for daycare, babysitters, or after-school programs, you can claim up to $3,000 in expenses for one child or $6,000 for two or more children on your taxes. This bill would double those amounts to $6,000 for one child and $12,000 for multiple children. That means you'd get a bigger tax credit to offset what you're actually spending on childcare. The second part of the bill increases a separate tax credit that employers can claim if they provide childcare benefits to their workers—raising the limit from $150,000 to $400,000. This could encourage more companies to offer childcare assistance as an employee benefit.

These changes would take effect for taxes filed after the bill becomes law. For families struggling with childcare costs, which can easily run thousands of dollars per year, this would put more money back in their pockets. The bill essentially recognizes that childcare expenses have grown significantly and adjusts the tax system to better reflect what families actually spend.

To amend the Internal Revenue Code of 1986 to increase the amount allowed as a credit under the expenses for household and dependent care services credit and the employer-provided child care credit.