Senate Bill 2472: Child and Dependent Care Tax Credit

February 22, 2024April 1, 2024 Bill Tracker

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On March 27, SB 2472 died in committee.

Explanation of the Bill

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Senate Bill 2472 creates a tax credit that is equal to the amount of the federal Child and Dependent Care Tax Credit. 

The federal Child and Dependent Care Tax Credit targets working families who pay for child care. Working families are eligible to receive a tax credit depending on the number of dependents they support. Families with an adjusted gross income (AGI) up to $15,000 a year, could receive a maximum tax credit in the amount of $1,050 a year for one dependent and $2,100 for two or more dependents. As a family earns more, the amount of the tax credit decreases. Families with an AGI of $43,000 a year or more could receive a maximum tax credit of $600 a year for one dependent and $1,200 a year for two or more dependents. 

Notably, this is not a refundable tax credit which means that families who end the tax year with no tax liability, typically low-income families with dependents, would not be able to receive a tax refund. 

The cost of enacting this Child and Dependent Care Tax Credit is unclear at this time.