1. Short title This Act may be cited as the Child and Dependent Care Tax Credit Enhancement Act of 2024 . 2. Enhancement of Child and Dependent Care Tax Credit (a) In general Paragraph (2) of section 21(a) of the Internal Revenue Code of 1986 is amended to read as follows: (2) Applicable percentage (A) In general For purposes of paragraph (1), the term applicable percentage means 50 percent reduced (but not below the phaseout percentage) by 1 percentage point for each $2,000 (or fraction thereof) by which the taxpayer's adjusted gross income for the taxable year exceeds $125,000. (B) Phaseout percentage For purposes of subparagraph (A), the term phaseout percentage means 20 percent reduced (but not below zero) by 1 percentage point for each $2,000 (or fraction thereof) by which the taxpayer’s adjusted gross income for the taxable year exceeds $400,000. . (b) Increase in dollar limit on amount creditable Subsection (c) of section 21 of the Internal Revenue Code of 1986 is amended— (1) in paragraph (1), by striking $3,000 and inserting $8,000