Expanding Child Care Access Act of 2025

Key Provisions

• Creates a new tax credit of up to $5,000 for licensed family child care providers to cover startup costs.
• Defines a qualified provider as someone licensed by the state, caring for at least two non-family children, mainly at their home.
• Lists specific startup costs that would qualify, such as child care licensing fees, supplies, liability insurance, fencing, playground equipment, furniture, employee salaries (not the taxpayer's), computers, professional training, and home renovations required for licensing.
• Limits the credit to one time per taxpayer, meaning you can only claim it once.
• Ends the credit for any tax year beginning after 7 years from the date the bill becomes law.