S.Amdt. 3640

1. Adds SEC. ___. ENHANCEMENT OF THE DEPENDENT CARE TAX CREDIT wherever appropriate

   Adds a section

   Inserted: SEC. ___. ENHANCEMENT OF THE DEPENDENT CARE TAX CREDIT.

   Inserted: (a) Increase in Dependent Care Tax Credit.--

   Inserted: (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:

   Inserted: "(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.".

   Inserted: (2) Increase in dollar limit on amount creditable.--Subsection (c) of section 21 of the Internal Revenue Code of 1986 is amended--

   Inserted: (A) by striking "$3,000" in paragraph (1) and inserting "$8,000", and

   Inserted: (B) by striking "$6,000" in paragraph (2) and inserting "$16,000".

   Inserted: (3) Inflation adjustment.--Section 21 of the Internal Revenue Code of 1986 is amended--

   Inserted: (A) by redesignating subsection (f) as subsection (g), and

   Inserted: (B) by inserting after subsection (e) the following new subsection:

   Inserted: "(f) Inflation Adjustment.--

   Inserted: "(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--

   Show 25 more inserted paragraphsShow less

   Inserted: "(A) such dollar amount, multiplied by

   Inserted: "(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.

   Inserted: "(2) Rounding.--The amount of any increase under paragraph (1) shall be rounded--

   Inserted: "(A) for purposes of the dollar amount in subsection (a)(2), the nearest multiple of $1,000, and

   Inserted: "(B) for purposes of the dollar amounts in subsection (c), the nearest multiple of $100.".

   Inserted: (b) Dependent Care Tax Credit To Be Refundable.--

   Inserted: (1) In general.--The Internal Revenue Code of 1986 is amended--

   Inserted: (A) by redesignating section 21, as amended by subsection (a), as section 36C, and

   Inserted: (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.

   Inserted: (2) Technical amendments.--

   Inserted: (A) Paragraph (1) of section 23(f) of the Internal Revenue Code of 1986 is amended by striking "21(e)" and inserting "36C(e)".

   Inserted: (B) Paragraph (6) of section 35(g) of such Code is amended by striking "21(e)" and inserting "36C(e)".

   Inserted: (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".

   Inserted: (D) Subparagraph (C) of section 129(a)(2) of such Code is amended by striking "section 21(e)" and inserting "section 36C(e)".

   Inserted: (E) Paragraph (2) of section 129(b) of such Code is amended by striking "section 21(d)(2)" and inserting "section 36C(d)(2)".

   Inserted: (F) Paragraph (1) of section 129(e) of such Code is amended by striking "section 21(b)(2)" and inserting "section 36C(b)(2)".

   Inserted: (G) Subsection (e) of section 213 of such Code is amended by striking "section 21" and inserting "section 36C".

   Inserted: (H) Subparagraph (A) of section 6211(b)(4) of such Code is amended by inserting "36C," after "36B,".

   Inserted: (I) Subparagraph (H) of section 6213(g)(2) of such Code is amended by striking "section 21" and inserting "section 36C".

   Inserted: (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,".

   Inserted: (K) Paragraph (2) of section 1324(b) of title 31, United States Code, is amended by inserting "36C," after "36B,".

   Inserted: (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:

   Inserted: "Sec. 36C. Expenses for household and dependent care services necessary for gainful employment.".

   Inserted: (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.

   Inserted: (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2014.

   The amendment doesn't say where this goes; the clerk decides.

   Original wording

   At the appropriate place, insert the following:

Read automatically from the Congressional Record. Check the original before relying on it.

As printed