[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3135 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 3135

 To amend the Internal Revenue Code of 1986 to make the dependent care 
tax credit refundable and to increase the amount of allowable dependent 
                 care expenses, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 28, 1998

Mr. Weygand (for himself and Mr. Frost) 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 make the dependent care 
tax credit refundable and to increase the amount of allowable dependent 
                 care expenses, and for other purposes.

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

SECTION 1. DEPENDENT CARE TAX CREDIT.

    (a) Making Credit Refundable.--Part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended--
            (1) in subpart C (relating to refundable credits) by 
        redesignating section 35 as section 36, and
            (2) by redesignating section 21 as section 35.
    (b) Increase in Allowable Expenses.--Subsection (c) of section 35 
of such Code (as redesignated by subsection (a) of this section) is 
amended--
            (1) in paragraph (1) by striking ``$2,400'' and inserting 
        ``$4,000'', and
            (2) in paragraph (2) by striking ``$4,800'' and inserting 
        ``$8,000''.
    (c) Change in Phasedown.--Paragraph (2) of section 35(a) of such 
Code (as redesignated by subsection (a) of this section) is amended to 
read as follows:
            ``(2) Applicable percentage defined.--For purposes of 
        paragraph (1), the term `applicable percentage' means 30 
        percent reduced (but not below 12 percent) by 1 percentage 
        point for each $3,000 (or fraction thereof) by which the 
        taxpayer's adjusted gross income for the taxable year exceeds 
        $18,000.''
    (d) Conforming Amendments.--
            (1) Section 23(f)(1) of such Code is amended by striking 
        ``section 21(e)'' and inserting ``section 35(e)''.
            (2) Section 129 of such Code is amended--
                    (A) in subsection (a)(2)(C) by striking ``section 
                21(e)'' and inserting ``section 35(e)'',
                    (B) in subsection (b)(2) by striking ``section 
                21(d)(2)'' and inserting ``section 35(d)(2)'', and
                    (C) in subsection (e)(1) by striking ``section 
                21(b)(2)'' and inserting ``section 35(b)(2)''.
            (3) Section 213(e) of such Code is amended by striking 
        ``section 21'' and inserting ``section 35''.
            (4) Section 6213(d)(2)(H) of such Code is amended by 
        striking ``section 21'' and inserting ``section 35''.
    (e) Clerical Amendments.--
            (1) The table of sections for subpart A of part IV of 
        subchapter A of chapter 1 of such Code (relating to refundable 
        credits) is amended by striking the item relating to section 
        21.
            (2) The table of sections for subpart C of part IV of 
        subchapter A of chapter 1 of such Code (relating to refundable 
        credits) is amended by striking the item relating to section 35 
        and inserting the following new items:

                              ``Sec. 35. Expenses for household and 
                                        dependent services necessary 
                                        for gainful employment.
                              ``Sec. 36. Overpayments of tax.''
    (f) Effective Date.--The amendments made by this section shall 
apply to expenses incurred after December 31, 1998.
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