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.