[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 988 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 988

To amend the Internal Revenue Code of 1986 to allow employers a credit 
 for a portion of the expenses of providing dependent care services to 
                               employees.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 6, 1997

 Ms. Pryce of Ohio (for herself, Mr. Roemer, Ms. Molinari, Mr. Frost, 
  Ms. Granger, Ms. Lofgren, Mr. Solomon, Mr. Bonior, Mr. Latham, Mrs. 
Maloney of New York, Mrs. Fowler, Mr. Faleomavaega, Mr. Greenwood, Mr. 
 Underwood, Mr. Walsh, Mr. Cummings, Mr. King, Mr. Moran of Virginia, 
    Mr. Shays, Mr. Filner, Mr. Klug, Ms. Jackson-Lee of Texas, Mr. 
  Martinez, Mr. Nadler, Mr. Knollenberg, Mr. Fattah, Ms. Rivers, Mr. 
   Bereuter, Mr. Evans, Mrs. Clayton, Mr. McHugh, Mr. Foglietta, Ms. 
  Danner, Mr. Menendez, Mr. Deutsch, and Mr. Ackerman) 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 allow employers a credit 
 for a portion of the expenses of providing dependent care services to 
                               employees.

    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 ``Child Care Availability Incentive 
Act''.

SEC. 2. CREDIT FOR EMPLOYER EXPENSES IN PROVIDING CERTAIN DEPENDENT 
              CARE SERVICES.

    (a) General Rule.--Subpart D of part IV of subchapter A of chapter 
1 of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 45D. EMPLOYER EXPENSES IN PROVIDING DEPENDENT CARE SERVICES.

    ``(a) General Rule.--For purposes of section 38, the employer day 
care center credit determined under this section for the taxable year 
is the amount determined under subsection (b) with respect to each 
qualified day care center of the taxpayer.
    ``(b) Credit Per Facility.--For purposes of this section--
            ``(1) In general.--The amount determined under this 
        subsection for any taxable year with respect to any qualified 
        day care facility of the taxpayer is 50 percent of the excess 
        (if any) of--
                    ``(A) the expenses paid or incurred by the taxpayer 
                during the taxable year in providing dependent care 
                services at such facility for employees, over
                    ``(B) the aggregate amount received or accrued 
                during the taxable year by the employer for such 
                services.
            ``(2) Depreciation allowances.--For purposes of paragraph 
        (1), depreciation allowances under section 167 shall be treated 
        as expenses.
    ``(c) Qualified Day Care Center.--For purposes of this section, the 
term `qualified day care center' means any day care center--
            ``(1) which is operated by the taxpayer exclusively for 
        purposes of providing dependent care services to employees,
            ``(2) which is located on the business premises of the 
        taxpayer or on a site adjacent to such premises,
            ``(3) which complies with all applicable laws and 
        regulations of a State or unit of local government, and
            ``(4) the operation of which is part of a dependent care 
        assistance program (as defined in section 129(d)).''
    (b) Credit Made Part of General Business Credit.--Subsection (b) of 
section 38 of such Code is amended by striking ``plus'' at the end of 
paragraph (11), by striking the period at the end of paragraph (12) and 
inserting ``, plus'', and by adding at the end thereof the following 
new paragraph:
            ``(13) the employer day care center credit determined under 
        section 45D(a).''
    (c) Denial of Double Benefit.--Section 280C of such Code is amended 
by adding at the end thereof the following new subsection:
    ``(d) Credit for Employer Day Care Center Expenses.--No deduction 
shall be allowed for that portion of the expenses referred to in 
section 45D(b)(1)(A) otherwise allowable as a deduction for the taxable 
year which is equal to the amount of the credit determined for such 
taxable year under section 45D(a).''
    (d) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by adding 
at the end the following new item:

                              ``Sec. 45D. Employer expenses in 
                                        providing dependent care 
                                        services.''
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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