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# Sec. 70405. Enhancement of child and dependent care tax credit
- URL: https://obbba-ghost.demo.discussionbridge.dev/sec-70405-enhancement-of-child-and-dependent-care-tax-credit/
- Published: 2025-07-21T21:15:33.000Z
- Updated: 2026-09-26T08:10:10.000Z
- Author: Ghost
- Tags: #discussionbridge-source, #discussionbridge-topic-243, #discussionbridge-revision-4ecc32e9be2c353224bb829bfebea78ba34299d1d103bc24087a77b40d239f6a, #discussionbridge-resource-ea8550b3-1d17-45a9-a087-3de12df7d28f, #discussionbridge-source-one-big-beautiful-bill-act, #discussionbridge-source-chapter-4-investing-in-american-families, #discussionbridge-source-enrolled-bill-text, #discussionbridge-source-subchapter-a-permanent-investments-in-families, #discussionbridge-source-subtitle-a-tax, #discussionbridge-source-title-vii, OBBBA Text

(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).”.

(b) Effective date.—The amendment made by this section shall apply to taxable years beginning after December 31, 2025.

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