Middle Class Tax Relief Act

Middle Class Tax Relief Act - Amends the Internal Revenue Code to: (1) increase the maximum allowable dollar amount of the dependent care tax credit; (2) increase to $60,000 the adjusted gross income threshold for the phaseout of such credit; (3) allow such credit for the expenses of caring for the taxpayer's parents (or ancestors of such parents) who are unable to care for themselves; and (4) extend the additional standard tax deduction for state and local real property taxes through 2010 and increase the allowable amount of such deduction.

Makes permanent the increases in the dollar limits for the dependent care tax credit enacted by the Economic Growth and Tax Relief Reconciliation Act of 2001.

[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5075 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 5075

To amend the Internal Revenue Code of 1986 to modify the dependent care 
tax credit and to extend and increase the additional standard deduction 
                for State and local real property taxes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 20, 2010

   Mr. Adler of New Jersey introduced the following bill; which was 
              referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to modify the dependent care 
tax credit and to extend and increase the additional standard deduction 
                for State and local real property taxes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Middle Class Tax Relief Act''.

SEC. 2. MODIFICATION OF DEPENDENT CARE CREDIT.

    (a) Increase in Dollar Limitation.--Subsection (c) of section 21 of 
the Internal Revenue Code of 1986 is amended--
            (1) by striking ``$3,000'' in paragraph (1) and inserting 
        ``$6,000'', and
            (2) by striking ``$6,000'' in paragraph (2) and inserting 
        ``$12,000''.
    (b) Increased Phaseout Threshold.--Paragraph (2) of section 21(a) 
of the Internal Revenue Code of 1986 (defining applicable percentage) 
is amended by striking ``$15,000'' and inserting ``$60,000''.
    (c) Modification of Credit for Expenses for Household and Dependent 
Care Services Necessary for Gainful Employment.--
            (1) In general.--Paragraph (1) of section 21(b) of the 
        Internal Revenue Code of 1986 (relating to qualifying 
        individual) is amended by striking ``or'' at the end of 
        subparagraph (B), by striking the period at the end of 
        subparagraph (C) and inserting ``, or,'' and by adding at the 
        end the following new subparagraph:
                    ``(D) a dependent of the taxpayer (as defined in 
                section 152, determined without regard to subsections 
                (b)(1), (b)(2), and (d)(1)(B)) who is the father or 
                mother of the taxpayer (or an ancestor of such father 
                or mother) and who is physically or mentally incapable 
                of caring for himself or herself.''.
            (2) Conforming amendment.--Section 21(b)(1)(B) of such Code 
        is amended by inserting ``(other than a dependent described in 
        subparagraph (D))'' after ``and (d)(1)(B))''.
    (d) Repeal of EGTRRA Sunset for Increased Dollar Limit.--Title IX 
of the Economic Growth and Tax Relief Reconciliation Act of 2001 shall 
not apply to section 204(a) of such Act.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2009.

SEC. 3. ADDITIONAL STANDARD DEDUCTION FOR STATE AND LOCAL REAL PROPERTY 
              TAXES.

    (a) One-Year Extension.--Subparagraph (C) of section 63(c)(1) of 
the Internal Revenue Code of 1986 is amended by striking ``or 2009'' 
and inserting ``, 2009, or 2010''.
    (b) Increase in Deduction Allowable.--Paragraph (7) of section 
63(c) of such Code is amended by striking ``the lesser of--'' and all 
that follows through ``Any taxes'' and inserting ``the amount allowable 
as a deduction under this chapter for State and local taxes described 
in section 164(a)(1). Any taxes''.
    (c) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2009.
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