2025—Subsec. (a)(1). Pub. L. 119–21, § 70401(a), substituted “40 percent (50 percent in the case of an eligible small business)” for “25 percent”.

Subsec. (b). Pub. L. 119–21, § 70401(b), amended subsec. (b) generally. Prior to amendment, text read as follows: “The credit allowable under subsection (a) for any taxable year shall not exceed $150,000.”

Subsec. (c)(1)(A)(iii). Pub. L. 119–21, § 70401(d), inserted “, or under a contract with an intermediate entity that contracts with one or more qualified child care facilities to provide such child care services” before period at end.

Subsec. (c)(2)(C). Pub. L. 119–21, § 70401(e), added subpar. (C).

Subsec. (c)(4). Pub. L. 119–21, § 70401(c), added par. (4).

Subsec. (g). Pub. L. 119–21, § 70401(f), added subsec. (g).

2002—Subsec. (d)(4)(B). Pub. L. 107–147 substituted “this chapter or for purposes of section 55” for “subpart A, B, or D of this part”.

Pub. L. 119–21, title VII, § 70401(g), July 4, 2025, 139 Stat. 213, provided that: “The amendments made by this section [amending this section] shall apply to amounts paid or incurred after December 31, 2025.”

Amendment by Pub. L. 107–147 effective as if included in the provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001, Pub. L. 107–16, to which such amendment relates, see section 411(x) of Pub. L. 107–147, set out as a note under section 25B of this title.

Section applicable to taxable years beginning after Dec. 31, 2001, see section 205(c) of Pub. L. 107–16, set out as an Effective Date of 2001 Amendment note under section 38 of this title.