S. 2565Senate113th Congress (2013-2015)In Committee

Helping Working Families Afford Child Care Act

Introduced July 8, 2014

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SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

July 8, 2014

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SenateIntro Referral

Introduced in Senate

July 8, 2014

SenateIntro Referral

Read twice and referred to the Committee on Finance.

July 8, 2014

Floor Debate

2 members

What members said about S. 2565 on the floor

2 Democrats
Richard J. Durbin
Sen. Richard J. DurbinD-IL · Jul 8, 2014

Madam President, this last weekend in Chicago was memorable--memorable for the wrong reasons. This last weekend in Chicago, gun violence took the lives of 14 people and wounded 82. I am honored to…

Patty Murray
Sen. Patty MurrayD-WA · Jul 8, 2014

Mr. President, I am here to discuss the Helping Working Families Afford Child Care Act, which is a bill my colleagues Senators Shaheen, Boxer, Gillibrand, and I introduced today. It will update the…

Patty Murray
Sen. Patty MurrayD-WA · Jul 8, 2014

Mr. President, I am here to discuss the Helping Working Families Afford Child Care Act, which is a bill my colleagues Senators Shaheen, Boxer, Gillibrand, and I introduced today. It will update the…

Patty Murray
Sen. Patty MurrayD-WA · Jul 8, 2014

Madam President, I ask unanimous consent that the order for the quorum call be rescinded. I ask unanimous consent to speak as in morning business. I yield the floor.

Bill Text

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Introduced in SenateIssued July 8, 2014

II

113th CONGRESS

2d Session

S. 2565

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.

1.

Short title

This Act may be cited as the Helping Working Families Afford Child Care Act.

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.