Enhances the Child and Dependent Care Tax Credit and makes it fully refundable for certain taxpayers.

The Child and Dependent Care Tax Credit Enhancement Act of 2025 amends the Internal Revenue Code to increase the dollar limit on the amount creditable for child and dependent care expenses from $3,000 to $8,000 and from $6,000 to $16,000. It also makes the credit fully refundable for taxpayers with a principal place of abode in the United States for more than one-half of the taxable year. The credit is adjusted for inflation starting in calendar years after 2025.

Enhances the Child and Dependent Care Tax Credit and makes it fully refundable for certain taxpayers.

The Child and Dependent Care Tax Credit Enhancement Act of 2025 amends the Internal Revenue Code to increase the dollar limit on the amount creditable for child and dependent care expenses from $3,000 to $8,000 and from $6,000 to $16,000. It also makes the credit fully refundable for taxpayers with a principal place of abode in the United States for more than one-half of the taxable year. The credit is adjusted for inflation starting in calendar years after 2025.