[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 847 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 847

 To amend the Internal Revenue Code of 1986 to make the dependent care 
tax credit refundable and to increase the amount of allowable dependent 
                             care expenses.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 24, 1999

Mr. Weygand (for himself and Mr. Shows) 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 
tax credit refundable and to increase the amount of allowable dependent 
                             care expenses.

    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 ``Care Givers Tax Reduction Act of 
1999''.

SEC. 2. DEPENDENT CARE TAX CREDIT.

    (a) Making Credit Refundable.--Part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended--
            (1) in subpart C (relating to refundable credits) by 
        redesignating section 35 as section 36, and
            (2) by moving section 21 to subpart C, inserting it after 
        section 34, and redesignating it as section 35.
    (b) Increase in Allowable Expenses.--Subsection (c) of section 35 
of such Code (as redesignated by subsection (a) of this section) is 
amended--
            (1) in paragraph (1) by striking ``$2,400'' and inserting 
        ``$4,000'', and
            (2) in paragraph (2) by striking ``$4,800'' and inserting 
        ``$8,000''.
    (c) Change in Phasedown.--Paragraph (2) of section 35(a) of such 
Code (as redesignated by subsection (a) of this section) is amended to 
read as follows:
            ``(2) Applicable percentage defined.--For purposes of 
        paragraph (1), the term `applicable percentage' means 30 
        percent reduced (but not below 12 percent) by 1 percentage 
        point for each $3,000 (or fraction thereof) by which the 
        taxpayer's adjusted gross income for the taxable year exceeds 
        $18,000.''
    (d) Inflation Adjustment.--Section 35 of such Code (as redesignated 
by subsection (a) of this section) is amended by redesignating 
subsection (f) as subsection (g) and by adding after subsection (e) the 
following new subsection:
    ``(f) Inflation Adjustment.--
            ``(1) In general.--In the case of a taxable year beginning 
        after 1999, each of the dollar amounts in subsection (c) 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, determined by substituting 
                ``calendar year 1998'' for ``calendar year 1992'' in 
                subparagraph (B) thereof.
            ``(2) Rounding.--If any amount as adjusted under paragraph 
        (1) is not a multiple of $50, such amount shall be rounded to 
        the next lowest multiple of $50.''.
    (e) Conforming Amendments.--
            (1) Section 23(f)(1) of such Code is amended by striking 
        ``section 21(e)'' and inserting ``section 35(e)''.
            (2) Section 129 of such Code is amended--
                    (A) in subsection (a)(2)(C) by striking ``section 
                21(e)'' and inserting ``section 35(e)'',
                    (B) in subsection (b)(2) by striking ``section 
                21(d)(2)'' and inserting ``section 35(d)(2)'', and
                    (C) in subsection (e)(1) by striking ``section 
                21(b)(2)'' and inserting ``section 35(b)(2)''.
            (3) Section 213(e) of such Code is amended by striking 
        ``section 21'' and inserting ``section 35''.
            (4) Subparagraphs (H) and (L) of section 6213(g)(2) of such 
        Code are each amended by striking ``section 21'' and inserting 
        ``section 35''.
    (f) Clerical Amendments.--
            (1) The table of sections for subpart A of part IV of 
        subchapter A of chapter 1 of such Code (relating to refundable 
        credits) is amended by striking the item relating to section 
        21.
            (2) The table of sections for subpart C of part IV of 
        subchapter A of chapter 1 of such Code (relating to refundable 
        credits) is amended by striking the item relating to section 35 
        and inserting the following new items:

                              ``Sec. 35. Expenses for household and 
                                        dependent services necessary 
                                        for gainful employment.
                              ``Sec. 36. Overpayments of tax.''
    (g) Effective Date.--The amendments made by this section shall 
apply to expenses incurred after December 31, 1999.
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