Helping Working Families Afford Child Care Act - Amends the Internal Revenue Code, with respect to the tax credit for employment-related expenses incurred for the care of a taxpayer's dependent, to: (1) increase to $200,000, the adjusted gross income threshold level above which such credit is incrementally reduced; (2) increase the dollar limit on the allowable amount of such credit; (3) allow an inflation adjustment to the threshold amount and the maximum credit amounts, beginning after 2015; and (4) make such credit refundable.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 2565 Introduced in Senate (IS)]
113th CONGRESS
2d Session
S. 2565
To amend the Internal Revenue Code of 1986 to enhance the dependent
care tax credit, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 8, 2014
Mrs. Shaheen (for herself, Mrs. Boxer, Mrs. Murray, Mrs. Gillibrand,
and Ms. Mikulski) introduced the following bill; which was read twice
and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to enhance the dependent
care tax credit, and for other purposes.
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 ``Helping Working Families Afford
Child Care Act''.
SEC. 2. ENHANCEMENT OF THE DEPENDENT CARE TAX CREDIT.
(a) Increase in Dependent Care Tax Credit.--
(1) Increase in incomes eligible for full credit.--
Paragraph (2) of section 21(a) of the Internal Revenue Code of
1986 is amended to read as follows:
``(2) Applicable percentage defined.--For purposes of
paragraph (1), the term `applicable percentage' means 20
percent reduced (but not below zero) by 1 percentage point for
each $5,000 (or fraction thereof) by which the taxpayer's
adjusted gross income for the taxable year exceeds $200,000.''.
(2) Increase in dollar limit on amount creditable.--
Subsection (c) of section 21 of the Internal Revenue Code of
1986 is amended--
(A) by striking ``$3,000'' in paragraph (1) and
inserting ``$8,000'', and
(B) by striking ``$6,000'' in paragraph (2) and
inserting ``$16,000''.
(3) Inflation adjustment.--Section 21 of the Internal
Revenue Code of 1986 is amended--
(A) by redesignating subsection (f) as subsection
(g), and
(B) by inserting after subsection (e) the following
new subsection:
``(f) Inflation Adjustment.--
``(1) In general.--In the case of any taxable year
beginning after 2015, the $200,000 amount in subsection (a)(2)
and each of the dollar amounts in subsection (c) shall each be
increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year in which
the taxable year begins, by substituting `2014' for
`1992' in subparagraph (B) thereof.
``(2) Rounding.--The amount of any increase under paragraph
(1) shall be rounded--
``(A) for purposes of the dollar amount in
subsection (a)(2), the nearest multiple of $1,000, and
``(B) for purposes of the dollar amounts in
subsection (c), the nearest multiple of $100.''.
(b) Dependent Care Tax Credit To Be Refundable.--
(1) In general.--The Internal Revenue Code of 1986 is
amended--
(A) by redesignating section 21, as amended by
subsection (a), as section 36C, and
(B) by moving section 36C, as so redesignated, from
subpart A of part IV of subchapter A of chapter 1 to
the location immediately before section 37 in subpart C
of part IV of subchapter A of chapter 1.
(2) Technical amendments.--
(A) Paragraph (1) of section 23(f) of the Internal
Revenue Code of 1986 is amended by striking ``21(e)''
and inserting ``36C(e)''.
(B) Paragraph (6) of section 35(g) of such Code is
amended by striking ``21(e)'' and inserting ``36C(e)''.
(C) Paragraph (1) of section 36C(a) of such Code
(as redesignated by paragraph (1)) is amended by
striking ``this chapter'' and inserting ``this
subtitle''.
(D) Subparagraph (C) of section 129(a)(2) of such
Code is amended by striking ``section 21(e)'' and
inserting ``section 36C(e)''.
(E) Paragraph (2) of section 129(b) of such Code is
amended by striking ``section 21(d)(2)'' and inserting
``section 36C(d)(2)''.
(F) Paragraph (1) of section 129(e) of such Code is
amended by striking ``section 21(b)(2)'' and inserting
``section 36C(b)(2)''.
(G) Subsection (e) of section 213 of such Code is
amended by striking ``section 21'' and inserting
``section 36C''.
(H) Subparagraph (A) of section 6211(b)(4) of such
Code is amended by inserting ``36C,'' after ``36B,''.
(I) Subparagraph (H) of section 6213(g)(2) of such
Code is amended by striking ``section 21'' and
inserting ``section 36C''.
(J) Subparagraph (L) of section 6213(g)(2) of such
Code is amended by striking ``section 21, 24, 32,'' and
inserting ``section 24, 32, 36C,''.
(K) Paragraph (2) of section 1324(b) of title 31,
United States Code, is amended by inserting ``36C,''
after ``36B,''.
(L) 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:
``Sec. 36C. Expenses for household and dependent care services
necessary for gainful employment.''.
(M) The table of sections for subpart A of such
part IV of such Code is amended by striking the item
relating to section 21.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2014.
<all>
Introduced in Senate
Read twice and referred to the Committee on Finance.
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