ENHANCEMENT OF CHILD AND DEPENDENT CARE TAX CREDIT.

SEC. 70405. ENHANCEMENT OF CHILD AND DEPENDENT CARE TAX CREDIT.(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 139 STAT. 215 adjusted gross income for the taxable year exceeds $75,000 ($150,000 in the case of a joint return).”.(b) 26 USC 21 note.Effective Date.—The amendment made by this section shall apply to taxable years beginning after December 31, 2025.