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HD 1238

An Act relative to a child and dependent care tax credit

194th Legislature (2025-2026) Introduced by Billy MacGregor and 2 co-sponsors

Massachusetts bill proposes state tax credit to help families offset childcare and dependent care costs, improving affordability for working parents.

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Bill Summary · HD 1238

Legislative bill overview

HD 1238 proposes establishing a child and dependent care tax credit in Massachusetts to help offset costs families incur for childcare and dependent care services. The bill aims to provide direct financial relief to working parents and caregivers through the state tax system. This represents a new tax benefit rather than an expansion of existing credits.

Why is this important

Childcare costs have become a significant financial burden for Massachusetts families, often consuming 10-15% of household income. A state-level tax credit could improve affordability and help parents—particularly lower and middle-income earners—remain in or return to the workforce. This addresses both economic competitiveness and workforce participation challenges.

Potential points of contention

  • Revenue impact and funding: Critics may question the cost to the state budget and whether resources should be directed toward subsidized childcare programs instead of tax credits
  • Who qualifies and eligibility scope: Debate over income thresholds, types of care covered (licensed vs. unlicensed, in-home vs. facility-based), and whether dependents beyond children are truly prioritized
  • Credit adequacy: Questions about whether the credit amount will meaningfully reduce costs or primarily benefit middle-to-upper income families with greater tax liability to offset

Compiled from official sources — confirm details with the bill’s official record.

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