[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5602 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 5602

To amend the Internal Revenue Code of 1986 to allow a refundable credit 
    to grandparents who provide primary child care services without 
   compensation for their grandchildren who are not their dependents.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 30, 2000

Ms. DeLauro (for herself and Mr. Maloney of Connecticut) 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 a refundable credit 
    to grandparents who provide primary child care services without 
   compensation for their grandchildren who are not their dependents.

    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 ``Grandchild Care Tax Relief Act of 
2000''.

SEC. 2. REFUNDABLE CREDIT TO GRANDPARENTS PROVIDING PRIMARY CHILD CARE 
              FOR GRANDCHILDREN NOT THEIR DEPENDENTS.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to refundable credits) 
is amended by redesignating section 35 as section 36 and by inserting 
after section 34 the following new section:

``SEC. 35. GRANDPARENTS PROVIDING PRIMARY CHILD CARE FOR GRANDCHILDREN 
              WHO ARE NOT THEIR DEPENDENTS.

    ``(a) In General.--In the case of an individual, there shall be 
allowed as a credit against the tax imposed by this chapter for the 
taxable year an amount equal to $500 with respect to each qualifying 
grandchild for whom the taxpayer or the spouse of the taxpayer 
provides, without compensation, primary child care services during the 
taxable year.
    ``(b) Qualifying Grandchild.--For purposes of this section, the 
term `qualifying grandchild' means any individual--
            ``(1) with respect to whom the taxpayer is not allowed a 
        deduction under section 151 with respect to such individual for 
        the taxable year,
            ``(2) who has not attained the age of 16 as of the close of 
        the calendar year in which the taxable year of the taxpayer 
        begins, and
            ``(3) who is a descendent of a son, daughter, stepson, or 
        stepdaughter of the taxpayer or is a foster child of such a 
        descendent, son, daughter, stepson, stepdaughter.
For purposes of paragraph (3), the term `foster child' means a child 
who is placed by an authorized placement agency.
    ``(c) Primary Child Care Services.--For purposes of this section, 
an individual provides primary child care services for a taxable year 
if the individual provides such services for not less than 30 hours per 
week for 48 weeks of the taxable year.
    ``(d) Special Rules.--For purposes of this section--
            ``(1) Deceased spouse or former spouse.--In the case of a 
        taxpayer whose spouse is deceased or is a former spouse of the 
        taxpayer, subsection (b)(3) shall be applied by substituting 
        `or deceased or former spouse of the taxpayer' after `taxpayer' 
        each place it occurs.
            ``(2) Identification requirement.--No credit shall be 
        allowed under this section to a taxpayer with respect to any 
        qualifying grandchild unless the taxpayer includes the name and 
        taxpayer identification number of such qualifying grandchild on 
        the return of tax for the taxable year.
            ``(3) Taxable year must be full taxable year.--Except in 
        the case of a taxable year closed by reason of the death of the 
        taxpayer, no credit shall be allowable under this section in 
        the case of a taxable year covering a period of less than 12 
        months.''.
    (b) Conforming Amendments.--
            (1) Paragraph (2) of section 1324(b) of title 31, United 
        States Code, is amended by inserting before the period ``, or 
        from section 35 of such Code''.
            (2) The table of sections for subpart C of part IV of 
        subchapter A of chapter 1 of the Internal Revenue Code of 1986 
        is amended by striking the last item and inserting the 
        following new items:

                              ``Sec. 35. Grandparents providing primary 
                                        child care for grandchildren 
                                        who are not their dependents.
                              ``Sec. 36. Overpayments of tax.''.
    (c) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to taxable years beginning with or after the taxable year 
        with respect to which the conditions specified in paragraph (2) 
        are satisfied.
            (2) Trigger mechanism.--The conditions specified in this 
        paragraph are the following:
                    (A) The credit under section 21 of the Internal 
                Revenue Code of 1986 (relating to expenses for 
                household and dependent care services necessary for 
                gainful employment)--
                            (i) is refundable,
                            (ii) is available at a maximum level to 
                        those with an adjusted gross income limit of 
                        not less than $30,000 per year, indexed for 
                        inflation,
                            (iii) is available at a minimal level to 
                        those with an adjusted gross income of not less 
                        than $60,000 per year, indexed for inflation, 
                        and
                            (iv) is available to parents of infants 
                        ages 0-12 months without regard to out-of-
                        pocket child care expenses of the parents.
                    (B) The maximum amount of employment-related 
                expenses that can be taken into account under section 
                21 of such Code is indexed for inflation.
                    (C) The applicable percentage of expenses that are 
                allowed under section 21 of such Code is increased to 
                not less than 50 percent.
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