Search

Search bills, members, committees and pages...

Sign In

H.R. 2900

U.S. House•In House Committee

Summary

H.R. 2900, the PACE Act, was introduced in the House on Apr 10, 2025 by Rep. Claudia Tenney (R) with 2 co-sponsors. It was referred to Ways And Means, and last saw action on Apr 10, 2025: Referred to the House Committee on Ways and Means.

Record

Text

H.R. 2900 has 2 co-sponsors.

hb2900/introduced-in-house.txt
119 HR 2900 IH: Promoting Affordable Childcare for Everyone Act
 U.S. House of Representatives
 2025-04-10
 text/xml
 EN
 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
 I  119th CONGRESS  1st Session  H. R. 2900  IN THE HOUSE OF REPRESENTATIVES   April 10, 2025   Ms. Tenney  (for herself and  Mr. Schneider ) introduced the following bill; which was referred to the  Committee on Ways and Means    A BILL
To amend the Internal Revenue Code of 1986 to increase and make fully refundable the Child and Dependent Care Tax Credit, to increase the maximum amount excludable from gross income for employer-provided dependent care assistance, and for other purposes.
1.
Short title
This Act may be cited as the   Promoting Affordable Childcare for Everyone Act   or the   PACE Act  .
2.
Refundability of Child and Dependent Care Tax Credit
(a)
In general
The Internal Revenue Code of 1986 is amended—
(1)
by redesignating section 21 as section 36C; and
(2)
by moving section 36C, as so redesignated, from subpart A of part IV of subchapter A of chapter 1 to the location immediately before section 37 in subpart C of part IV of subchapter A of chapter 1.
(b)
Technical amendments
(1)
Paragraph (1) of  section 23(f)  of the Internal Revenue Code of 1986 is amended by striking  21(e)  and inserting  36C(e) .
(2)
Paragraph (6) of section 35(g) of such Code is amended by striking  21(e)  and inserting  36C(e) .
(3)
Paragraph (1) of section 36C(a) of such Code (as redesignated by subsection (a)) is amended by striking  this chapter  and inserting  this subtitle .
(4)
Subparagraph (C) of section 129(a)(2) of such Code is amended by striking  section 21(e)  and inserting  section 36C(e) .
(5)
Paragraph (2) of section 129(b) of such Code is amended by striking  section 21(d)(2)  and inserting  section 36C(d)(2) .
(6)
Paragraph (1) of section 129(e) of such Code is amended by striking  section 21(b)(2)  and inserting  section 36C(b)(2) .
(7)
Subsection (e) of section 213 of such Code is amended by striking  section 21  and inserting  section 36C .
(8)
Subparagraph (H) of section 6213(g)(2) of such Code is amended by striking  section 21  and inserting  section 36C .
(9)
Subparagraph (L) of section 6213(g)(2) of such Code is amended by inserting  36C,  after  32, .
(10)
Paragraph (2) of section 1324(b) of title 31, United States Code, is amended by inserting  36C,  after  36B, .
(11)
The table of sections for subpart C of part IV of subchapter A of  chapter 1  of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 36B the following:
Sec. 36C. Expenses for household and dependent care services necessary for gainful employment.
  .
(12)
The table of sections for subpart A of part IV of subchapter A of chapter 1 of such Code is amended by striking the item relating to section 21.
(c)
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2025.
3.
Enhancement of the Child and Dependent Care Tax Credit
(a)
In general
 Section 36C  of the Internal Revenue Code of 1986, as redesignated by section 2 of this Act, is amended—
(1)
in paragraph (2) of subsection (a), by striking  35 percent reduced (but not below 20 percent)  and inserting  50 percent reduced (but not below 35 percent) ;
(2)
by striking subsection (g) and redesignating subsection (f) as subsection (g); and
(3)
by inserting after subsection (e) the following new subsection:
(f)
Inflation adjustment
(1)
In general
In the case of any taxable year beginning after 2025, each of the dollar amounts in subsections (a)(2) and (c) shall be increased by an amount equal to—
(A)
such dollar amount, multiplied by
(B)
the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting  calendar year 2024  for  calendar year 2016  in subparagraph (A)(ii) thereof.
(2)
Rounding
If any increase determined under paragraph (1) is not a multiple of $50, such increase shall be rounded to the nearest multiple of $50.
 .
(b)
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2025.
4.
Increase in exclusion for employer-provided dependent care assistance
(a)
In general
Subparagraph (A) of  section 129(a)(2)  of the Internal Revenue Code of 1986 (relating to dependent care assistance programs) is amended by striking  $5,000 ($2,500  and inserting  $7,500 (half such dollar amount .
(b)
Inflation adjustment
Paragraph (2) of section 129(a) of such Code is amended by striking subparagraph (D) and inserting the following new subparagraph:
(D)
Inflation adjustment
In the case of any taxable year beginning in a calendar year after 2026, the $7,500 amount in subparagraph (A) shall be increased by an amount equal to—
(i)
such dollar amount, multiplied by
(ii)
the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting  calendar year 2025  for  calendar year 2016  in subparagraph (A)(ii) thereof.
 Any increase determined under the preceding sentence shall be rounded to the nearest multiple of $100.
 .
(c)
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2025.

Tracker

The tracker indicates the progress of this legislation as it moves through the legislative process.

  1. Introduced2025-04-10
  2. Passed House
  3. Passed Senate
  4. Conference
  5. To President
  6. Became Law

CRS Summary

The summaries are the Congressional Research Service’s, one per stage. Read them in full.

Introduced in House Apr 10, 2025

hb2900/introduced-in-house.md

Shown Here:
Introduced in House (04/10/2025)

Promoting Affordable Childcare for Everyone Act or the PACE Act

This bill increases and makes refundable the tax credit for qualified child and dependent care expenses. The bill also increases the exclusion from gross income for employer-provided child and dependent care benefits.

Under current law, a nonrefundable tax credit is allowed for up to 35% (maximum tax credit percentage) of qualified child and dependent care expenses incurred by an individual to work or look for work, up to a maximum amount. The percentage of such expenses allowed as a tax credit may be reduced, but not below 20% (minimum tax credit percentage), based on an individual’s adjusted gross income.

The bill generally increases the tax credit for qualified child and dependent care expenses by

  • increasing the maximum tax credit percentage to 50%,
  • increasing the minimum tax credit percentage to 35%, and
  • adjusting the maximum credit amounts annually for inflation.

The bill also makes the tax credit for qualified child and dependent care expenses refundable.

Finally, the bill increases and adjusts for inflation the amount that may be excluded from gross income for employer-sponsored child and dependent care benefits (e.g., dependent care flexible spending arrangements) to $7,500 (from $5,000).

Sponsors

Rep. Claudia Tenney (R) sponsors H.R. 2900, and 2 members have co-sponsored it, 1 of them from the day it was introduced.

Committees

H.R. 2900 went before 1 committee: Ways and Means.

Ways and Means
Ways and Means
Referred To · Apr 10, 2025 · 1,160 Bills

Actions

H.R. 2900 has taken 2 actions since Apr 10, 2025.

ChamberAction
Apr 10, 2025
House
Introduced in House
Apr 10, 2025
House
Referred to the House Committee on Ways and Means.Ways and Means Committee

Votes

H.R. 2900 has not gone to a roll call.

Titles

H.R. 2900 goes by 4 titles, 2 of them short titles.

  • PACE Act — Display Title
  • PACE Act — Short Title(s) as Introduced
  • Promoting Affordable Childcare for Everyone Act — Short Title(s) as Introduced
  • To amend the Internal Revenue Code of 1986 to increase and make fully refundable the Child and Dependent Care Tax Credit, to increase the maximum amount excludable from gross income for employer-provided dependent care assistance, and for other purposes. — Official Title as Introduced

Lobbying

2 clients hired 1 firm and 17 registered lobbyists who named H.R. 2900 in 3 quarterly filings, 2025. Reported under the Lobbying Disclosure Act; a filing’s income covers everything its registrant worked that quarter, so the amounts below are the filings’, not this bill’s.

Filed under Agriculture, Education, Taxation/Internal Revenue Code.

Clients

Who paid to be heard, by how many filings named the bill.

ClientBusinessStateFirmsFilingsReported
THE EARLY CARE AND EDUCATION CONSORTIUMearly education non-profitDistrict of Columbia12$140K
KINDERCARE EDUCATION, LLCEarly childhood education providerDistrict of Columbia11$50K

Firms

Registrants who filed on the bill, by filings.

RegistrantClientsFilingsReported
BROWNSTEIN HYATT FARBER SCHRECK, LLP23$190K

Lobbyists

Named on the filings that cite the bill.

LobbyistFirmsClientsFilings
ALEXIS ANICAMA123
MARC LAMPKIN123
NADEAM ELSHAMI123
RADHA MOHAN123
SAGE SCHAFTEL123
ANDREW USYK112
DAVID REID112
HAROLD HANCOCK112
JOHN REISING112
LEAH MIDDLEBERG112
MARK WARREN112
RUSSELL SULLIVAN112
SAPNA RAMPERSAUD122
ZACHARY PFISTER112
JOHN MENGES111
LAUREN FLYNN111
MARK PRYOR111

Filings

The documents themselves, on the Senate’s Lobbying Disclosure site, largest reported first.

ClientRegistrantPeriodReportedDocument
THE EARLY CARE AND EDUCATION CONSORTIUMBROWNSTEIN HYATT FARBER SCHRECK, LLP2025 second_quarter$80K2nd Quarter - Report
THE EARLY CARE AND EDUCATION CONSORTIUMBROWNSTEIN HYATT FARBER SCHRECK, LLP2025 first_quarter$60K1st Quarter - Report
KINDERCARE EDUCATION, LLCBROWNSTEIN HYATT FARBER SCHRECK, LLP2025 second_quarter$50K2nd Quarter - Report

Classification

The Congressional Research Service files H.R. 2900 under Taxation, one of its 31 policy areas.

CRS Subjects

CRS assigns every bill one policy area from its 31; H.R. 2900’s is Taxation.

hr2900/policy-areas.txt
TaxationAgriculture and FoodAnimalsArmed Forces and National SecurityArts, Culture, ReligionCivil Rights and Liberties, Minority IssuesCommerceCongressCrime and Law EnforcementEconomics and Public FinanceEducationEmergency ManagementEnergyEnvironmental ProtectionFamiliesFinance and Financial SectorForeign Trade and International FinanceGovernment Operations and PoliticsHealthHousing and Community DevelopmentImmigrationInternational AffairsLabor and EmploymentLawNative AmericansPublic Lands and Natural ResourcesScience, Technology, CommunicationsSocial WelfareSports and RecreationTransportation and Public WorksWater Resources Development

Constitutional authority

The clause the sponsor cites as Congress’s power to enact H.R. 2900, as entered in the Congressional Record.

[Congressional Record Volume 171, Number 65 (Thursday, April 10, 2025)][House]From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]By Ms. TENNEY:H.R. 2900.Congress has the power to enact this legislation pursuantto the following:Article I[Page H1603]

Source: congress.gov · legiscan.com