Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/309181 
Year of Publication: 
2024
Series/Report no.: 
Upjohn Institute Working Paper No. 24-411
Publisher: 
W.E. Upjohn Institute for Employment Research, Kalamazoo, MI
Abstract: 
The Child and Dependent Car Credit (CDCC) subsidizes child care costs for working families. In response to the Covid-19 pandemic, the American Rescue Plan Act of 2021 increased the CDCC's generosity during 2021 only. I find that while the CDCC is of relatively little value in its current form, increases in eligibility rates and conditional benefits under the pandemic expansion increased the credit's value dramatically. Conditional on CDCC eligibility, higherincome households experienced the largest increases in benefit levels under the expanded CDCC, but lower-income households benefited disproportionately when measuring benefits as a share of income or child care spending.
Subjects: 
Child and Dependent Care Credit
child care
American Rescue Plan Act of 2021
eligibility benefits
JEL: 
H24
J13
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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