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This bill amends the Internal Revenue Code to expand tax benefits for child care expenses. It increases the employer-provided child care credit from 25% to 50% of qualified expenses (up to 60% for small businesses) and raises the maximum credit from $150,000 to $500,000 ($600,000 for small businesses). It also increases the dependent care assistance program exclusion from $5,000 to $7,500 annually, and creates a new refundable household and dependent care credit for individuals with qualifying dependents, with the credit percentage ranging from 35% to 50% based on adjusted gross income.
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