EXPANDING TAX CREDITS FOR CHILD CARE:

Voting 250 for and 161 against, the House on July 29 passed a bill (HR 7327) that would make the child and dependent care tax credit fully refundable; create a new tax credit to help child care providers pay rent, mortgage and utility costs; guarantee $10 billion per year over five years in infrastructure grants to help child care centers address health hazards such as mold, lead paint and inadequate ventilation; designate child care personnel as “essential workers” eligible for benefits including pay bumps because they perform a hazardous public service during the pandemic, and reimburse these essential workers for their own child care costs.

At present, households filing federal tax returns can claim a child and dependent care credit of up to $3,000 per child 12 years or younger or $6,000 for two or more children in the same age range. In addition, they can claim a $3,000 or $6,000 credit to offset the cost of caring for spouses or dependents older than 12 who are mentally or physically incapable of self-care. By making these credits fully refundable, the bill enables low-income working families to receive Treasury checks of $3,000 per qualified individual (or $6,000 for multiple individuals) even if they have no tax liability.

Richard Neal, D-Mass., said to parents, “We have heard you loudly and clearly. This childcare crisis is … pushing many of you to the breaking point. … We are all in this together, and we have got your back.”

Adrian Smith, R-Neb., said he was “saddened” by such an “unrealistic” bill, and he complained that “no Republican input was sought” during the legislative process.

A yes vote was to send the bill to the Senate.

ARKANSAS

Voting no: Bruce Westerman, R-4

TEXAS

Not voting: Louie Gohmert