S.Amdt. 121

SA 121. Mrs. BOXER submitted an amendment intended to be proposed to
amendment SA 98 proposed by Mr. Inouye (for himself and Mr. Baucus) to
the bill H.R. 1, making supplemental appropriations for job
preservation and creation, infrastructure investment, energy efficiency
and science, assistance to the unemployed, and State and local fiscal
stabilization, for fiscal year ending September 30, 2009, and for other
purposes; which was ordered to lie on the table; as follows:

On page 452, between lines 18 and 19, insert the following:

PART III--RIGHT START CHILD CARE AND EDUCATION

SEC. 1021. INCREASE IN EMPLOYER-PROVIDED CHILD CARE CREDIT.

(a) Increase in Creditable Percentage of Child Care
Expenditures.--Paragraph (1) of section 45F(a) is amended by
striking ``25 percent'' and inserting ``35 percent''.
(b) Increase in Creditable Percentage of Resource and
Referral Expenditures.--Paragraph (2) of section 45F(a) is
amended by striking ``10 percent'' and inserting ``20
percent''.
(c) Increase in Maximum Credit.--Subsection (b) of section
45F is amended by striking ``$150,000'' and inserting
``$225,000''.
(d) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2008.

SEC. 1022. INCREASE IN DEPENDENT CARE CREDIT.

(a) Increase in Incomes Eligible for Full Credit.--
Paragraph (2) of section 21(a) is amended by striking
``$30,000'' and inserting ``$20,000''.
(b) Increase in Percentage of Expenses Allowable.--
Paragraph (2) of section 21(a) is amended--
(1) by striking ``35 percent'' and inserting ``50
percent'', and
(2) by striking ``20 percent'' and inserting ``35
percent''.

[[Page S1446]]

(c) Increase in Dollar Limit on Amount Creditable.--
Subsection (c) of section 21 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''.
(d) Credit to Be Refundable.--
(1) In general.--Section 21 is hereby moved to subpart C of
part IV of subchapter A of chapter 1 (relating to refundable
credits) and inserted after section 36A.
(2) Technical amendments.--
(A) Section 21, as so moved, is redesignated as section
36B.
(B) Paragraph (1) of section 36B(a) (as redesignated by
paragraph (2)) is amended by striking ``this chapter'' and
inserting ``this subtitle''.
(C) Paragraph (1) of section 23(f) is amended by striking
``21(e)'' and inserting ``36B(e)''.
(D) Paragraph (6) of section 35(g) is amended by striking
``21(e)'' and inserting ``36B(e)''.
(E) Subparagraph (C) of section 129(a)(2) is amended by
striking ``section 21(e)'' and inserting ``section 36B(e)''.
(F) Paragraph (2) of section 129(b) is amended by striking
``section 21(d)(2)'' and inserting ``section 36B(d)(2)''.
(G) Paragraph (1) of section 129(e) is amended by striking
``section 21(b)(2)'' and inserting ``section 36B(b)(2)''.
(H) Subsection (e) of section 213 is amended by striking
``section 21'' and inserting ``section 36B''.
(I) Subparagraph (H) of section 6213(g)(2) is amended by
striking ``section 21'' and inserting ``section 36B''.
(J) Subparagraph (L) of section 6213(g)(2) is amended by
striking ``section 21,'' and inserting ``section 36B,''.
(K) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by inserting ``36B,'' after ``36A,''.
(L) The table of sections for subpart C of part IV of
subchapter A of chapter 1 is amended by inserting after the
item relating to section 36A and inserting the following:

``Sec. 36B. Expenses for household and dependent care services
necessary for gainful employment.''

(M) The table of sections for subpart A of such part IV is
amended by striking the item relating to section 21.
(e) Certain Prior Amendments to Credit Made Permanent.--
Section 901 of the Economic Growth and Tax Relief
Reconciliation Act of 2001 shall not apply to the amendments
made by section 204 of such Act.
(f) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2008.

SEC. 1023. 3-YEAR CREDIT FOR INDIVIDUALS HOLDING CHILD CARE-
RELATED DEGREES WHO WORK IN LICENSED CHILD CARE
FACILITIES.

(a) In General.--Subpart A of part IV of subchapter A of
chapter 1 (relating to nonrefundable personal credits) is
amended by inserting after section 25D the following new
section:

``SEC. 25E. RIGHT START CHILD CARE AND EDUCATION CREDIT.

``(a) Allowance of Credit.--In the case of an individual
who is an eligible child care provider for the taxable year,
there shall be allowed as a credit against the tax imposed by
this chapter for the taxable year the amount of $2,000.
``(b) 3-Year Credit.--
``(1) In general.--The credit allowable by subsection (a)
for any taxable year to an individual shall be allowed for
such year only if the individual elects the application of
this section for such year.
``(2) Election.--An election to have this section apply may
not be made by an individual for any taxable year if such an
election by such individual is in effect for any 3 prior
taxable years.
``(c) Eligible Child Care Provider.--For purposes of this
section--
``(1) In general.--The term `eligible child care provider'
means, for any taxable year, any individual if--
``(A) as of the close of such taxable year, such individual
holds a bachelor's degree in early childhood education, child
care, or a related degree and such degree was awarded by an
eligible educational institution (as defined in section
25A(f)(2)), and
``(B) during such taxable year, such individual performs at
least 1,200 hours of child care services at a facility if--
``(i) the principal use of the facility is to provide child
care services,
``(ii) no more than 25 percent of the children receiving
child care services at the facility are children (as defined
in section 152(f)) of the individual or such individual's
spouse, and
``(iii) the facility meets the requirements of all
applicable laws and regulations of the State or local
government in which it is located, including the licensing of
the facility as a child care facility.

Subparagraph (B)(i) shall not apply to a facility which is
the principal residence (within the meaning of section 121)
of the operator of the facility.
``(2) Child care services.--The term `child care services'
means child care and early childhood education.''.
(b) Clerical Amendment.--The table of sections for such
subpart A is amended by inserting after the item relating to
section 25D the following new item:

``Sec. 25E. Right Start Child Care and Education Credit.''.

(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2008.

SEC. 1024. INCREASE IN EXCLUSION FOR EMPLOYER-PROVIDED
DEPENDENT CARE ASSISTANCE.

(a) In General.--Subparagraph (A) of section 129(a)(2)
(relating to dependent care assistance programs) is amended
by striking ``$5,000 ($2,500'' and inserting ``$7,500
($3,750''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2008.
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