LITTLE Act of 2024

HR 10041, the LITTLE Act of 2024, creates two new tax credits to reduce childcare costs. It provides childcare providers with a 30% tax credit for startup expenses (up to $10,000 total lifetime) to support new businesses. For families, it increases the dependent care credit to 50% of eligible expenses (capped at $7,500 for one child or $15,000 for two+ children) and makes the credit refundable, meaning families can receive money back even if they owe no tax. The credit percentage decreases for higher-income households, with adjustments for inflation starting in 2025.