Expanding Child Care Access Act of 2025

This bill, titled the "Expanding Child Care Access Act of 2025," amends the Internal Revenue Code of 1986 to introduce a new refundable tax credit. This credit is specifically designed to assist qualified family child care providers with their startup expenses, offering up to $5,000 for amounts paid or incurred in the current or preceding taxable year. The primary goal is to incentivize the establishment and operation of regulated home-based child care services. To qualify for the credit, a family child care provider must be licensed or registered under State law, primarily provide care at the taxpayer's residence, and serve at least two non-family children for a significant portion of the year. Qualified child care startup expenses include a range of costs such as licensing fees, child care supplies, liability insurance, fencing, playground equipment, necessary furniture, and professional training or home renovations required for licensure. This credit is a one-time benefit per taxpayer and includes a sunset provision, expiring seven years after enactment.