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The LITTLE Act of 2024 amends the Internal Revenue Code to establish two childcare-related tax credits. First, it creates a new childcare provider startup credit allowing qualified childcare providers to claim 30 percent of startup expenses, capped at $10,000 lifetime per provider. Second, it increases the household and dependent care credit from its current level to 50 percent of qualifying expenses (reduced by 1 percentage point for each $2,000 of income over $15,000, but not below 35 percent), raises the expense cap to $7,500 for one dependent and $15,000 for two or more dependents, and makes the credit refundable.
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