Sec. 70405. Enhancement of child and dependent care tax credit
Official source: Public Law 119-21, Section 70405 — 139 Stat. 214-215.
(a) In General.—
Paragraph (2) of section 21(a) is amended to read as follows:
“(2) Applicable percentage defined.—
For purposes of paragraph (1), the term ‘applicable percentage’ means 50 percent—
“(A) reduced (but not below 35 percent) by 1 percentage point for each $2,000 or fraction thereof by which the taxpayer’s adjusted gross income for the taxable year exceeds $15,000, and
“(B) further reduced (but not below 20 percent) by 1 percentage point for each $2,000 ($4,000 in the case of a joint return) or fraction thereof by which the taxpayer’s adjusted gross income for the taxable year exceeds $75,000 ($150,000 in the case of a joint return).”
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(b) Effective Date.—
The amendment made by this section shall apply to taxable years beginning after December 31, 2025.