Families First Act

Families First Act - Amends the Internal Revenue Code to allow an adjustment for inflation in calendar years after 2014 to amounts allowed with respect to the tax credit for dependent care expenses necessary for employment and the exclusion from gross income for employer-provided dependent care assistance.

[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5258 Introduced in House (IH)]

113th CONGRESS
  2d Session
                                H. R. 5258

To amend the Internal Revenue Code of 1986 to index the dependent care 
               credit and income exclusion for inflation.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 30, 2014

  Mrs. Capito (for herself, Mrs. McMorris Rodgers, Mrs. Wagner, Mrs. 
Ellmers, Mrs. Bachmann, Mr. Valadao, Mr. Rodney Davis of Illinois, Ms. 
  Granger, Mrs. Lummis, and Mr. Fitzpatrick) 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 index the dependent care 
               credit and income exclusion for inflation.

    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 ``Families First Act''.

SEC. 2. INFLATION ADJUSTMENTS OF CREDIT AND EXCLUSION FOR DEPENDENT 
              CARE EXPENSES.

    (a) Credit.--
            (1) In general.--Section 21(e) of the Internal Revenue Code 
        of 1986 is amended by adding at the end the following new 
        paragraph:
            ``(11) Inflation adjustment.--
                    ``(A) In general.--In the case of any taxable year 
                beginning in a calendar year after 2014, the dollar 
                amounts in subsections (a)(2) and (c)(2) shall each be 
                increased by an amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        determined by substituting `calendar year 2013' 
                        for `calendar year 1992' in subparagraph (B) 
                        thereof.
                    ``(B) Rounding.--Any increase determined under 
                subparagraph (A) shall be rounded to the nearest 
                multiple of $10.''.
            (2) Dollar limit on amount creditable.--Section 21(c)(1) of 
        the Internal Revenue Code of 1986 is amended by striking 
        ``$3,000'' and inserting ``50 percent of the amount in effect 
        under paragraph (2) for the taxable year''.
    (b) Exclusion.--
            (1) In general.--Section 129(e) of the Internal Revenue 
        Code of 1986 is amended by adding at the end the following new 
        paragraph:
            ``(10) Inflation adjustment.--
                    ``(A) In general.--In the case of any taxable year 
                beginning in a calendar year after 2014, the dollar 
                amount in subsection (a)(2)(A) shall be increased by an 
                amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        determined by substituting `calendar year 2013' 
                        for `calendar year 1992' in subparagraph (B) 
                        thereof.
                    ``(B) Rounding.--Any increase determined under 
                subparagraph (A) shall be rounded to the nearest 
                multiple of $10.''.
            (2) Limitation on exclusion.--Section 129(a)(2)(A) of the 
        Internal Revenue Code of 1986 is amended by striking ``$2,500'' 
        and inserting ``50 percent of such amount''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2014.
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