Alabama’s senators each got some of their priorities included in the U.S. Senate’s updates to President Donald Trump’s tax cut bill, but the sweeping legislation still faces obstacles before becoming law.
U.S. Sen. Katie Britt, R-Alabama, a big advocate for expanding tax breaks for families with children, applauded the expansion of the child and dependent care tax credit included in the Senate Finance Committee’s portion of the megabill. The credit helps families with children who pay for child care. The maximum credit rate would be increased to 50% from 35% of qualifying expenses, adjusted for income. This enhancement was not included in the House version.
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“An overwhelming majority of American families, 81% of parents, have called on Congress to address the affordability and accessibility of child care,” Britt said in a statement. “Senate Republicans responded by including critical updates to child care tax credits in the One Big Beautiful Bill Act.”
The Senate plan, unlike the House’s version, also enhances the dependent care assistance program, which provides employees the ability to set aside money from their paychecks tax-free to pay for child care. The provision increases the exclusion up to $7,500 annually. It’s currently at $5,000.
EDITOR’S NOTE — This story was written by Alex Angle and originally published by Alabama Daily News.
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