Advocacy News – July 31, 2024
What’s happening: The MI Chamber voiced its support for a number of federal programs that aim to make childcare more affordable and accessible, requesting that lawmakers strengthen and expand existing programs. In a letter to Congress, the MI Chamber emphasized the continued need for support of working parents and employers by ensuring the longevity of the federal Child and Dependent Care Tax Credit (CDCTC), Dependent Care Assistance Program (DCAP) and Employer Provided Child Care Tax Credit (45F).
What are these programs? Collectively, these programs aim to mitigate the cost of childcare for working parents and incentivize businesses to be hands-on in their employee’s childcare needs.
- The CDCTC, one of the most popular childcare assistance programs in Michigan, is the only tax credit that all working parents can access to offset the cost of child care necessary for work.
- The DCAP allows working parents to exclude up to $5,000 in childcare assistance provided by their employer from their gross income.
- The 45F program generates employer interest by providing a nonrefundable tax credit of up to 25% of qualified childcare expenditures, and 10% of qualified childcare resource and referral expenditures.
Go deeper: Read more for a detailed breakdown of each program or contact Leah Robinson with questions.