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 adjusted gross income for the taxable year exceeds $75,000 ($150,000 in the case of a joint return).” . (b) [26 U.S.C. 21 note] Effective Date.—The amendment made by this section shall apply to taxable years beginning after December 31, 2025.