[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4782 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 4782

 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

                            October 9, 1998

 Mr. Thompson 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.--
            (1) In general.--Part IV of subchapter A of chapter 1 of 
        the Internal Revenue Code of 1986 is amended--
                    (A) in subpart C (relating to refundable credits) 
                by redesignating section 35 as section 36, and
                    (B) by moving section 21 from subpart A to subpart 
                C and redesignating such section as section 35.
            (2) Clerical amendments.--
                    (A) The table of sections for subpart A of part IV 
                of subchapter A of chapter 1 of such Code is amended by 
                striking the item relating to section 21.
                    (B) The table of sections for subpart C of part IV 
                of subchapter A of chapter 1 of such Code is amended by 
                striking the item relating to section 35 and inserting 
                the following:

                              ``Sec. 35. Expenses for household and 
                                        dependent care services 
                                        necessary for gainful 
                                        employment.
                              ``Sec. 36. Overpayments of tax.''.
    (b) Increase in Dollar Limit.--Subsection (c) of section 35 of such 
Code (as redesignated by subsection (a) of this section) is amended--
            (1) by striking ``$2,400'' in paragraph (1) and inserting 
        ``$3,000'', and
            (2) by striking ``$4,800'' in paragraph (2) and inserting 
        ``$6,000''.
    (c) Increase in Applicable Percentage.--Paragraph (2) of section 
35(a) of such Code (as redesignated by subsection (a) of this section) 
is amended--
            (1) by striking ``$2,000'' and inserting ``$3,000'', and
            (2) by striking ``$10,000'' and inserting ``$30,000''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1998.
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