Child and Dependent Care Tax Credit Improvement Act of 2017
This bill 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 $126,000, 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 adjusted gross income threshold and the maximum credit amounts, beginning after 2018; and (4) make such credit refundable.
[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2238 Introduced in House (IH)]
<DOC>
115th CONGRESS
1st Session
H. R. 2238
To amend the Internal Revenue Code of 1986 to enhance the Child and
Dependent Care Tax Credit and make the credit fully refundable.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 28, 2017
Mrs. Demings 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 enhance the Child and
Dependent Care Tax Credit and make the credit fully refundable.
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 ``Child and Dependent Care Tax Credit
Improvement Act of 2017''.
SEC. 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.--For purposes of paragraph
(1), the term `applicable percentage' means 50 percent reduced
(but not below 20 percent) by 1 percentage point for each
$2,000 (or fraction thereof) by which the taxpayer's adjusted
gross income for the taxable year exceeds $126,000.''.
(b) Increase in Dollar Limit on Amount Creditable.--Subsection (c)
of section 21 of such Code is amended--
(1) in paragraph (1), by striking ``$3,000'' and inserting
``$8,000''; and
(2) in paragraph (2), by striking ``$6,000'' and inserting
``$16,000''.
(c) Adjustment for Inflation.--Section 21 of such Code is amended--
(1) by redesignating subsection (f) as subsection (g); and
(2) by inserting after subsection (e) the following new
subsection:
``(f) Inflation Adjustment.--
``(1) In general.--In the case of a calendar year beginning
after 2018, the $126,000 amount in paragraph (2) of subsection
(a) and 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, determined by substituting
`calendar year 2017' for `calendar year 1992' in
subparagraph (B) thereof.
``(2) Rounding.--If any dollar amount, after being
increased under paragraph (1), is not a multiple of $100, such
dollar amount shall be rounded to the next lowest multiple of
$100.''.
(d) Credit To Be Refundable.--
(1) In general.--The Internal Revenue Code of 1986 is
amended--
(A) by redesignating section 21 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 (H) of section 6213(g)(2) of such
Code is amended by striking ``section 21'' and
inserting ``section 36C''.
(I) Subparagraph (L) of section 6213(g)(2) of such
Code is amended by striking ``section 21, 24, or 32,''
and inserting ``section 24, 32, or 36C,''.
(J) Paragraph (2) of section 1324(b) of title 31,
United States Code, is amended by inserting ``36C,''
after ``36B,''.
(K) 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.''.
(L) The table of sections for subpart A of such
part IV is amended by striking the item relating to
section 21.
(e) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2017.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line