BPC News & Analysis

Childcare Tax Benefits Underused, Potential $329 Billion Impact

A report by the Bipartisan Policy Center indicates that a lack of available childcare could cost the U.S. economy up to $329 billion over the next decade. The U.S. Congress Joint Economic Committee notes only 13% of private sector workers have access to childcare benefits through employers. Additionally, just about 12% of taxpayers with children claim the child and dependent care tax credit, which can offset up to $6,000 in childcare expenses. Improved utilization of these tax incentives could lead to significant savings for families and stimulate economic productivity.