Child and Dependent Care Tax Credit Enhancement Act of 2024

This bill increases the Child and Dependent Care Tax Credit for eligible taxpayers. It raises the maximum credit rate from 35% to 50% (with income phaseouts), doubles the annual dollar limits from $3,000/$6,000 to $8,000/$16,000 for one/two or more dependents, and makes the credit refundable for qualifying taxpayers. The credit becomes refundable, meaning families can receive payments even if they owe no income tax. The bill also includes automatic annual inflation adjustments starting in 2025 to maintain the credit's value. It directly benefits working families with childcare costs, particularly those earning between $125,000 and $400,000 in adjusted gross income.