Upjohn Author ORCID Identifier
Issue Date
March 2026
Abstract
High care costs for children and older adults put an increasing strain on American families, often pushing caregivers out of the workforce. While investments in affordable care deliver lasting benefits for families, employers, and the economy, the federal Child and Dependent Care Tax Credit (CDCTC) falls short—leaving states well positioned to make a difference. This Policy Blueprint highlights three ways the CDCTC fails families, and three solutions for designing a state tax credit that can help.
Subject Areas
Early childhood; Childcare / Child care; LABOR MARKET ISSUES; Work and family balance; Business and tax incentives; EDUCATION
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Citation
Pepin, Gabrielle. 2026. "How to Design a State Child and Dependent Care Tax Credit That Works." Kalamazoo, MI: W.E. Upjohn Institute for Employment Research.