[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3178 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 3178

 To amend the Internal Revenue Code of 1986 to make the dependent care 
 credit refundable and to provide for advance payments of such credit.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 28, 1999

  Mr. Peterson of Minnesota 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 
 credit refundable and to provide for advance payments of such credit.

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

SECTION 1. DEPENDENT CARE CREDIT MADE REFUNDABLE; ADVANCE PAYMENT OF 
              SUCH CREDIT.

    (a) Credit To Be Refundable.--
            (1) In general.--Section 21 of the Internal Revenue Code of 
        1986 (relating to expenses for household and dependent care 
        services necessary for gainful employment) is hereby moved to 
        subpart C of part IV of subchapter A of chapter 1 of such Code 
        (relating to refundable credits) and inserted after section 34.
            (2) Redesignations.--
                    (A) Section 35 of such Code is redesignated as 
                section 36.
                    (B) Section 21 of such Code is redesignated as 
                section 35.
    (b) Advance Payment of Credit.--Chapter 25 of such Code (relating 
to general provisions relating to employment taxes) is amended by 
inserting after section 3507 the following:

``SEC. 3507A. ADVANCE PAYMENT OF DEPENDENT CARE CREDIT.

    ``(a) General Rule.--Except as otherwise provided in this section, 
every employer making payment of wages with respect to whom a dependent 
care eligibility certificate is in effect shall, at the time of paying 
such wages, make an additional payment equal to such employee's 
dependent care advance amount.
    ``(b) Dependent Care Eligibility Certificate.--For purposes of this 
title, a dependent care eligibility certificate is a statement 
furnished by an employee to the employer which--
            ``(1) certifies that the employee will be eligible to 
        receive the credit provided by section 35 for the taxable year,
            ``(2) certifies that the employee reasonably expects to be 
        an applicable taxpayer for the taxable year,
            ``(3) certifies that the employee does not have a dependent 
        care eligibility certificate in effect for the calendar year 
        with respect to the payment of wages by another employer,
            ``(4) states whether or not the employee's spouse has a 
        dependent care eligibility certificate in effect,
            ``(5) states the number of qualifying individuals in the 
        household maintained by the employee, and
            ``(6) estimates the amount of employment-related expenses 
        for the calendar year.
    ``(c) Dependent Care Advance Amount.--
            ``(1) In general.--For purposes of this title, the term 
        `dependent care advance amount' means, with respect to any 
        payroll period, the amount determined--
                    ``(A) on the basis of the employee's wages from the 
                employer for such period,
                    ``(B) on the basis of the employee's estimated 
                employment-related expenses included in the dependent 
                care eligibility certificate, and
                    ``(C) in accordance with tables provided by the 
                Secretary.
            ``(2) Advance amount tables.--The tables referred to in 
        paragraph (1)(C) shall be similar in form to the tables 
        prescribed under section 3402 and, to the maximum extent 
        feasible, shall be coordinated with such tables and the tables 
        prescribed under section 3507(c).
    ``(d) Other Rules.--For purposes of this section, rules similar to 
the rules of subsections (d) and (e) of section 3507 shall apply.
    ``(e) Definitions.--For purposes of this section, terms used in 
this section which are defined in section 35 shall have the respective 
meanings given such terms by section 35.''.
    (c) Conforming Amendments.--
            (1) Section 35(a)(1) of such Code, as redesignated by 
        subsection (a), is amended by striking ``chapter'' and 
        inserting ``subtitle''.
            (2) Section 35(e) of such Code, as so redesignated, is 
        amended by adding at the end the following:
            ``(12) Coordination with advance payments and minimum 
        tax.--Rules similar to the rules of subsections (g) and (h) of 
        section 32 shall apply for purposes of this section.''.
            (3) Sections 23(f)(1) and 129(a)(2)(C) of such Code are 
        each amended by striking ``section 21(e)'' and inserting 
        ``section 35(e)''.
            (4) Section 129(b)(2) of such Code is amended by striking 
        ``section 21(d)(2)'' and inserting ``section 35(d)(2)''.
            (5) Section 129(e)(1) of such Code is amended by striking 
        ``section 21(b)(2)'' and inserting ``section 35(b)(2)''.
            (6) Section 213(e) of such Code is amended by striking 
        ``section 21'' and inserting ``section 35''.
            (7) Section 995(f)(2)(C) of such Code is amended by 
        striking ``and 34'' and inserting ``34, and 35''.
            (8) Section 6211(b)(4)(A) of such Code is amended by 
        striking ``and 34'' and inserting ``, 34, and 35''.
            (9) Section 6213(g)(2)(H) of such Code is amended by 
        striking ``section 21'' and inserting ``section 35''.
            (10) Section 6213(g)(2)(L) of such Code is amended by 
        striking ``section 21, 24, or 32'' and inserting ``section 24, 
        32, or 35''.
            (11) 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. Dependent care services.
                              ``Sec. 36. Overpayments of tax.''.
            (12) The table of sections for subpart A of such part IV is 
        amended by striking the item relating to section 21.
            (13) The table of sections for chapter 25 of such Code is 
        amended by adding after the item relating to section 3507 the 
        following:

                              ``Sec. 3507A. Advance payment of 
                                        dependent care credit.''.
            (14) Section 1324(b)(2) of title 31, United States Code, is 
        amended by inserting before the period ``, or from section 35 
        of the Internal Revenue Code of 1986''.
    (d) Effective Date.--The amendments made by this section apply to 
taxable years beginning after December 31, 1999.
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