April 26, 2021 Group Watch: Federal Funds Set for Childcare Facilities in AL
Childcare providers across Alabama are among the many hit hard by the pandemic and as such, are set to receive much needed assistance from the American Rescue Plan. More than $730 million in federal funding will help childcare providers open safely, keep workers on the payroll and lower childcare costs for hardworking families. The American Rescue Plan is also expanding the child and dependent care tax credit. A median-income family in Alabama with two kids under age 13 will receive up to $8,000 towards their childcare expenses when they file taxes for 2021, compared with a previous maximum of $1,200. For the first time, the CDCTC will be fully refundable, making the credit fairer by allowing low-income working families to receive the full value of the credit towards, regardless of how much they owe on their 2021 taxes.
