Exclusion of children from credit for expenses for household and dependent care services necessary for gainful employment

(a) In general Section 21 of the Internal Revenue Code of 1986 is amended— (1) in subsection (b)— (A) in paragraph (1)— (i) by striking subparagraph (A), (ii) in subparagraph (B), by inserting who has attained age 17 and before who is physically or mentally incapable, and (iii) by redesignating subparagraphs (B) and (C) as subparagraphs (A) and (B), respectively, and (B) in paragraph (2), by striking subparagraph (B) and inserting the following: (B) Exception Employment-related expenses described in subparagraph (A) which are incurred for services outside the taxpayer's household shall be taken into account only if incurred for the care of a qualifying individual who regularly spends at least 8 hours each day in the taxpayer's household., (2) in subsection (d)(2), by striking subsection (b)(1)(C) and inserting subsection (b)(1)(B), and (3) in subsection (e)(5)— (A) in subparagraph (B), by striking is under the age of 13 or and inserting has attained age 17 and, and (B) in the flush text at the end, by striking subparagraph (A) or (B) of subsection (b)(1) (whichever is appropriate) and inserting subsection (b)(1)(A). (b) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2025.