[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1275 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 1275

To amend the Internal Revenue Code of 1986 to increase the amount which 
may be excluded from the gross income of an employee for dependent care 
 assistance with respect to dependent care services provided during a 
taxable year, to adjust such amount each year by the rate of inflation 
                 for such year, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 14, 2005

Ms. Baldwin (for herself, Mr. Van Hollen, Ms. Woolsey, and Mr. Snyder) 
 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 increase the amount which 
may be excluded from the gross income of an employee for dependent care 
 assistance with respect to dependent care services provided during a 
taxable year, to adjust such amount each year by the rate of inflation 
                 for such year, and for other purposes.

    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 Parents Child Care Relief 
Act''.

SEC. 2. INCREASE OF AMOUNT WHICH MAY BE EXCLUDED FROM GROSS INCOME OF 
              EMPLOYEE FOR DEPENDENT CARE ASSISTANCE AND ANNUAL 
              ADJUSTMENT OF AMOUNT FOR ANNUAL RATE OF INFLATION.

    (a) Increase of Amount.--Section 129(a)(2)(A) of the Internal 
Revenue Code of 1986 is amended by striking ``$5,000 ($2,000'' and 
inserting ``$6,000 ($3,000''.
    (b) Annual Adjustment.--Section 129(a)(2) of such Code is amended 
by adding at the end the following new subparagraph:
                    ``(D) Adjustment for inflation.--
                            ``(i) In general.--In the case of any 
                        taxable year beginning in a calendar year after 
                        2005, each amount specified in subparagraph (A) 
                        shall be increased by an amount equal to the 
                        product of--
                                    ``(I) such amount, and
                                    ``(II) the cost-of-living 
                                adjustment determined under section 
                                1(f)(3) for the calendar year in which 
                                the taxable year begins, determined by 
                                substituting `2004' in subparagraph (B) 
                                thereof.
                            ``(ii) Rounding.--If any increase 
                        determined under clause (i) is not a multiple 
                        of $50, such increase shall be rounded to the 
                        nearest multiple of $50.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2004.
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