[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3332 Introduced in House (IH)]







104th CONGRESS
  2d Session
                                H. R. 3332

 To amend the Internal Revenue Code of 1986 to increase the child care 
credit and eliminate the exclusion of certain income of and the special 
      dividends received deduction with respect to foreign sales 
                             corporations.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 25, 1996

 Ms. McKinney 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 increase the child care 
credit and eliminate the exclusion of certain income of and the special 
      dividends received deduction with respect to foreign sales 
                             corporations.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Middle Class Child Care 
Affordability Act of 1996''.

SEC. 2. INCREASE OF CERTAIN LIMITATIONS APPLICABLE TO CHILD CARE 
              CREDIT.

    (a) Increase of Amount of Employment-Related Expenses Taken Into 
Account.--Subsection (c) of section 21 of the Internal Revenue Code of 
1986 (relating to expenses for household and dependent care services 
necessary for gainful employment) is amended--
            (1) in paragraph (1), by striking ``$2,400'' and inserting 
        ``$3,600'', and
            (2) in paragraph (2), by striking ``$4,800'' and inserting 
        ``$5,400''.
    (b) Increase of Amount at Which Phase-Down of Percentage Begins.--
Paragraph (2) of section 21(a) of such Code is amended by striking 
``$10,000'' and inserting ``$20,000''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1995.

SEC. 3. OFFSET PROVISIONS REGARDING FOREIGN SALES CORPORATIONS.

    (a) Elimination of Exclusion.--Section 921 of the Internal Revenue 
Code of 1986 (relating to exempt foreign trade income excluded from 
gross income) is amended by adding at the end the following new 
subsection:
    ``(e) Termination.--This section shall not apply to any taxable 
year beginning after December 31, 1995.''
    (b) Elimination of Special Dividends Received Deduction.--Section 
245 of such Code (relating to dividends received from certain foreign 
corporations) is amended by striking subsection (c).
    (c) Effective Dates.--
            (1) Exclusion.--The amendment made by subsection (a) shall 
        apply to taxable years beginning after December 31, 1995.
            (2) Dividends received deduction.--The amendment made by 
        subsection (b) shall apply to dividends distributed out of 
        earnings and profits attributable to taxable years beginning 
        after December 31, 1995.
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