taxable year, such individual performs at least 1,200 hours of child care services at a facility if— (i) the principal use of the facility is to provide child care services, (ii) no more than 25 percent of the children receiving child care services at the facility are children (as defined in section 152(f)) of the individual or such individual’s spouse, and (iii) the facility meets the requirements of all applicable laws and regulations of the State or local government in which it is located, including the licensing of the facility as a child care facility. Subparagraph (B)(i) shall not apply to a facility which is the principal residence (within the meaning of section 121) of the operator of the facility. (2) Child care services The term child care services means child care and early childhood education. . (b) Conforming amendments (1) Section 6211(b)(4)(A) of the Internal Revenue Code of 1986 is amended by inserting , 36C after 36B . (2) Paragraph (2) of section 1324(b) of title 31, United States Code, is amended by inserting , 36C after 36B . (c) Clerical amendment The table of sections for subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 36B the following new item: Sec. 36C. Right start child care and education credit. . (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2024. 4. Increase in exclusion for employer-provided dependent care assistance (a) In general Section 129(a)(2)(A) of the Internal Revenue Code of 1986 is amended by striking $5,000 ($2,500 and inserting the applicable limitation amount (half such amount . (b) Conforming amendment Section 129(a)(2) of the Internal Revenue Code of 1986 is amended by striking subparagraph (D) and by inserting after subparagraph (C) the following new subparagraph: (D) Applicable limitation amount For purposes of this paragraph, the term applicable limitation amount means the amount that is the sum of— (i)