A plan to provide personal income tax credits for child care was passed by the West Virginia House of Delegates, marking a significant legislative milestone. The bill now heads to the Senate for additional consideration after passing with a resounding 88-3 vote during a special session.

Families could get a 1000 CTC Payment 2024 from the proposed law that is equal to half of the federal CTC. A family eligible for a $1,000 federal tax credit, for instance, would also receive a $500 credit on their state income taxes.

1000 CTC Payment

The law would go into retroactive effect at the start of 2024 if it were enacted. On September 30, the first day of the special session, the bill was introduced by House Speaker Roger Hanshaw, a Republican from Clay, and Minority Leader Sean Hornbuckle, a Democrat from Campbell. Around 700 child care places have reportedly been lost this year as a result of closures brought on by erratic funding and a personnel deficit brought on by low pay.

As of now, the enrollment-based subsidy program authorized by the federal government is how the state is compensating the centers. The fact that these short-term funding are expected to run out by the end of the year emphasizes how urgently long-term solutions are needed. Furthermore, a proposal for a five-million dollar investment focused at boosting child care facilities in West Virginia was recently added to Governor Jim Justice’s modified agenda for the special session.

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Senate approves Child Care Tax Credit

• Knowing about the state’s child care issue, lawmakers convened a special session. Over 20,000 child care places are needed in West Virginia. Due to financial strain and uncertain governmental support, hundreds of providers have shuttered this year despite family waitlists.
• On his request for a special session, Governor Jim Justice included two proposals pertaining to childcare. His initiative to create a state-level Child and Dependent Care Tax Credit was accepted by lawmakers because of his emphasis on affordability.
• Legislators estimate that families in West Virginia that qualify and currently claim the federal child care tax credit would get an average of $250 from the state credit. The average family’s monthly day care costs range from $600 to $700. Following the end of the special session, Justice told reporters that the state ought to have invested more funds in child care. Justice claimed to have included bills he believed would pass.

• More than 15,000 low-income children in the state are served by day care centers, and several senators pointed out that these providers had already informed them of what they required. Garcia recommended that the bill be tabled indefinitely, and the House agreed, voting 47–40. Tuesday night’s sine die adjournment of the House and Senate marked the end of the special session. Justice claimed that after attempting to provide $20 million for child care, his request was reduced to $5 million for his pilot program.
• On last day of the special session, the Senate approved the Child and Dependent Care Tax Credit, sending it to the governor’s desk. A credit equal to 50% of the federal CDCC would be available to qualified households.
• The fiscal note accompanying the law estimates that its implementation will cost $4.2 million. The state Chamber of Commerce and lawmakers encouraged Justice to include more child care proposals in the call for a special session. Proposals to help child care workers pay for daycare and to give businesses a larger tax credit for providing child care were included in bills from the regular session that were not brought to a vote.

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Child Care Tax Credit in 2025

• One important tool for assisting families with children in reducing their tax burden is the Internal Revenue Service’s (IRS) Child Tax Credit. The Child Tax Credit was expanded, and the IRS introduced Direct File, a free tax filing facility, in 2025 as one of the major changes to its tax help programs. With these adjustments, millions of taxpayers should be able to access more credits and deductions, which will boost their refunds and decrease their tax obligations.
• More than 30 million taxpayers will be able to use the IRS’s free tax filing software, Direct File, starting with the 2025 tax year, the agency has disclosed. This program has significantly expanded and enables people to file their taxes with ease and at no additional expense.
• With the Child Tax Credit, families can receive tax relief and partially defray some of the costs related to raising children. Increasing the number of states where Direct File is available and expanding the list of credits and deductions would enable more families to benefit from this offer without having to pay for tax preparation services.
• Note that Direct File will not be available to taxpayers who itemize their deductions, such as those whose medical costs exceed 7.5% of AGI, make big charitable contributions, or pay high property taxes. The IRS has stated, however, that continuing to broaden the program to include more typical tax scenarios particularly those that affect working families is its long-term objective.

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