[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 2079 Introduced in Senate (IS)]







105th CONGRESS
  2d Session
                                S. 2079

  To amend the Internal Revenue Code of 1986 to replace the dependent 
care credit for children age 5 and under with an increase in the amount 
               of the child tax credit for such children.


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                   IN THE SENATE OF THE UNITED STATES

                 May 14 (legislative day, May 13), 1998

 Mr. Smith of Oregon (for himself, Mr. Hatch, Mr. Grams, Mr. Abraham, 
Mr. Wyden, and Mr. Hutchinson) introduced the following bill; which was 
          read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to replace the dependent 
care credit for children age 5 and under with an increase in the amount 
               of the child tax credit for such children.

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

SECTION 1. REPLACEMENT OF DEPENDENT CARE CREDIT FOR CHILDREN UNDER AGE 
              6 WITH INCREASE IN CHILD TAX CREDIT.

    (a) Increase in Child Tax Credit.--Subsection (a) of section 24 of 
the Internal Revenue Code of 1986 (relating to child tax credit) is 
amended by striking ``an amount equal to $500'' and all that follows 
through the period and inserting the following: ``an amount equal to--
            ``(1) $1,500 in the case of a qualifying child who is 5 
        years of age or less, and
            ``(2) $500 in the case of all other qualifying children.''.
    (b) Coordination of Dependent Care Credit.--Section 21 of the 
Internal Revenue Code of 1986 (relating to expenses for household and 
dependent care services necessary for gainful employment) is amended by 
inserting ``over the age of 5 and'' before ``under the age of 13'' each 
place it appears in subsections (b)(1)(A) and (e)(5)(B).
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1998.
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