H.R. 1296 — Expanding Child Care Access Act of 2025

This section provides the short title of the Act as the “Expanding Child Care Access Act of 2025.”

This section establishes a new licensed family child care tax credit under 26 U.S.C. § 36C for qualified taxpayers that operate a qualified family child care provider. The credit equals up to $5,000 of qualified child care startup expenses per taxable year, and a taxpayer may claim it only once. As background, family child care providers care for children in a home-based setting; to qualify, the provider must be licensed or registered under state law, meet applicable state and local requirements, primarily operate at the taxpayer’s primary residence, and serve at least 2 children other than the taxpayer’s children for a significant portion of the year. This section defines qualified child care startup expenses to include licensing fees; supplies such as diapers, food, toys, and learning materials; liability insurance; fencing and installation; outdoor playground equipment and installation; necessary furniture; wages for an employee other than the taxpayer; printers and computers; required professional training; and remediation or renovation of the taxpayer’s primary residence required for licensure or registration. It also bars a double tax benefit for any expense already deducted or credited under another provision of the Internal Revenue Code and directs the Secretary of the Treasury to issue regulations or guidance, including information reporting and coordination with state and local licensing or registration entities. This section terminates the credit for taxable years beginning more than 7 years after enactment. It also makes conforming amendments to 31 U.S.C. § 1324(b)(2) and the Internal Revenue Code’s table of sections, and applies the credit to amounts paid or incurred after the date of enactment.