Plain English Breakdown
The official source material does not specify the exact impact on families with children needing dependent care services beyond the tax credit changes for those earning less than $60,000.
Doubling Child Care Tax Credit for Low-Income Families
This act doubles the child care and dependent care expense tax credit for Delaware residents with taxable income under $60,000 and makes it refundable.
What This Bill Does
- Increases the child care and dependent care expense tax credit to twice its original amount for people who earn less than $60,000 per year.
- Makes the increased tax credit refundable, meaning families can get money back even if they do not owe taxes.
Who It Names or Affects
- Delaware residents who earn less than $60,000 per year and pay child care expenses.
Terms To Know
- Tax Credit
- A reduction in the amount of tax a person or business has to pay.
- Refundable Tax Credit
- A type of tax credit that can result in a refund if it is larger than the total tax owed.
Limits and Unknowns
- The bill does not provide details on how much money will be saved or refunded.
- It only affects Delaware residents and their child care expenses.