113 HR 5258 IH: Families First Act U.S. House of Representatives 2014-07-30 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 113th CONGRESS 2d Session H. R. 5258 IN THE HOUSE OF REPRESENTATIVES July 30, 2014 Mrs. Capito (for herself, Mrs. McMorris Rodgers, Mrs. Wagner, Mrs. Ellmers, Mrs. Bachmann, Mr. Valadao, Mr. Rodney Davis of Illinois, Ms. Granger, Mrs. Lummis, and Mr. Fitzpatrick) 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 index the dependent care credit and income exclusion for inflation.

1.

Short title

This Act may be cited as the Families First Act.

2.

Inflation adjustments of credit and exclusion for dependent care expenses

(a)

Credit

(1)

In general

Section 21(e) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (11)

Inflation adjustment

(A)

In general

In the case of any taxable year beginning in a calendar year after 2014, the dollar amounts in subsections (a)(2) and (c)(2) shall each be increased by an amount equal to— (i)such dollar amount, multiplied by (ii)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 2013 for calendar year 1992 in subparagraph (B) thereof. (B)

Rounding

Any increase determined under subparagraph (A) shall be rounded to the nearest multiple of $10.. (2)

Dollar limit on amount creditable

Section 21(c)(1) of the Internal Revenue Code of 1986 is amended by striking $3,000 and inserting 50 percent of the amount in effect under paragraph (2) for the taxable year. (b)

Exclusion

(1)

In general

Section 129(e) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (10)

Inflation adjustment

(A)

In general

In the case of any taxable year beginning in a calendar year after 2014, the dollar amount in subsection (a)(2)(A) shall be increased by an amount equal to— (i)such dollar amount, multiplied by (ii)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 2013 for calendar year 1992 in subparagraph (B) thereof. (B)

Rounding

Any increase determined under subparagraph (A) shall be rounded to the nearest multiple of $10.. (2)

Limitation on exclusion

Section 129(a)(2)(A) of the Internal Revenue Code of 1986 is amended by striking $2,500 and inserting 50 percent of such amount. (c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2014.