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A new vision for child care in the United States: A proposed new tax credit to expand high-quality child care

Description:
The United States needs a new approach to make high-quality, affordable childcare a reality for families. In order to effectively address the numerous barriers that millions of families face when searching for child care, the solution must give parents a choice of high-quality providers, support them in affording the cost, and be widely available to parents with young children--especially those with children under age 3, who face the biggest challenges. To address these issues in the child care market, CAP proposes a High-Quality Child Care Tax Credit to help low-income and middle-class families afford childcare. The tax credit would be targeted to high-quality providers, driving the child care market to improve and creating a true choice among quality child care providers for the very first time. To support families that struggle to afford ever increasing child care costs, among other household expenses, the tax credit--worth up to $14,000 per child--would be advanced to families throughout the year on a monthly basis and paid directly to a child care provider that the parent chooses. The proposal would serve more than 6 million children under age 5, increasing the current service level by more than fourfold. (author abstract)
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