How to Design a State Child and Dependent Care Tax Credit That Works

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.