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.
Short title
This Act may be cited as the Helping Working Families Afford Child Care Act
.
Enhancement of the dependent care tax credit
Increase in dependent care tax credit
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:
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.
.
Increase in dollar limit on amount creditable
Subsection (c) of section 21 of the Internal Revenue Code of 1986 is amended—
by striking
$3,000
in paragraph (1) and inserting $8,000
,
and
by striking
$6,000
in paragraph (2) and inserting
$16,000
.
Inflation adjustment
Section 21 of the Internal Revenue Code of 1986 is amended—
by redesignating subsection (f) as subsection (g), and
by inserting after subsection (e) the following new subsection:
Inflation adjustment
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—
such dollar amount, multiplied by
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.
Rounding
The amount of any increase under paragraph (1) shall be rounded—
for purposes of the dollar amount in subsection (a)(2), the nearest multiple of $1,000, and
for purposes of the dollar amounts in subsection (c), the nearest multiple of $100.
.
Dependent care tax credit To be refundable
In general
The Internal Revenue Code of 1986 is amended—
by redesignating section 21, as amended by subsection (a), as section 36C, and
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.
Technical amendments
Paragraph (1) of section 23(f) of the Internal Revenue Code of 1986 is amended by striking 21(e)
and inserting 36C(e)
.
Paragraph (6) of section 35(g) of such Code
is amended by striking 21(e)
and inserting
36C(e)
.
Paragraph (1) of
section 36C(a) of such Code (as redesignated by paragraph (1)) is
amended
by
striking this chapter
and inserting this
subtitle
.
Subparagraph (C)
of section 129(a)(2) of such Code is amended by striking section
21(e)
and inserting section 36C(e)
.
Paragraph (2) of
section 129(b) of such Code is amended by striking section
21(d)(2)
and inserting section 36C(d)(2)
.
Paragraph (1) of
section 129(e) of such Code is amended by striking section
21(b)(2)
and inserting section 36C(b)(2)
.
Subsection (e) of
section 213 of such Code is amended by striking section 21
and
inserting section 36C
.
Subparagraph (A) of section 6211(b)(4) of such Code is amended by inserting 36C,
after 36B,
.
Subparagraph (H)
of section 6213(g)(2) of such Code is amended by striking section
21
and inserting section 36C
.
Subparagraph (L)
of section 6213(g)(2) of such Code is amended by striking section 21,
24, 32,
and inserting section 24, 32, 36C,
.
Paragraph (2) of
section 1324(b) of title 31, United States Code, is amended by inserting
36C,
after 36B,
.
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.
.
The table of sections for subpart A of such part IV of such Code is amended by striking the item relating to section 21.
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2014.