[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 490 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                 S. 490

To amend the Internal Revenue Code of 1986 to adjust for inflation the 
            dollar limitations on the dependent care credit.


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                   IN THE SENATE OF THE UNITED STATES

                             March 20, 1997

   Mr. Akaka 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 adjust for inflation the 
            dollar limitations on the dependent care credit.

    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 ``Working Families Child Care Tax 
Relief Act''.

SEC. 2. INFLATION ADJUSTMENT OF DEPENDENT CARE CREDIT.

    (a) In General.--Subsection (e) 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 by adding at 
the end the following new paragraph:
            ``(11) Inflation adjustment.--In the case of any taxable 
        year beginning in a calendar year after 1996, each dollar 
        amount contained in subsections (c) and (d)(2) shall be 
        increased by an amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins, by substituting `calendar year 
                1995' for `calendar year 1992' in subparagraph (B) 
                thereof.''
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after December 31, 1996.
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