[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5655 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 5655

 To amend the Internal Revenue Code of 1986 to expand and improve the 
                       dependent care tax credit.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 14, 2008

  Mr. Weiner 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 expand and improve the 
                       dependent care tax credit.

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

SECTION 1. EXPANSION AND IMPROVEMENT OF DEPENDENT CARE TAX CREDIT.

    (a) Increase in Dollar Limit on Amount of Employment-Related 
Expenses Which Are Creditable.--Subsection (c) of section 21 of the 
Internal Revenue Code of 1986 is amended--
            (1) by striking ``$3,000'' in paragraph (1) and inserting 
        ``$6,000 ($9,000 in the case of a taxpayer whose adjusted gross 
        income is less than $30,000)'', and
            (2) by striking ``$6,000'' in paragraph (2) and inserting 
        ``$12,000 ($18,000 in the case of a taxpayer whose adjusted 
        gross income is less than $30,000)''.
    (b) Repeal of Requirement That Dependent and Taxpayer Share the 
Same Place of Abode.--
            (1) In general.--Paragraph (1) of section 21(b) of such 
        Code is amended--
                    (A) by inserting ``(determined without regard to 
                section 152(c)(1)(B))'' after ``section 152(a)(1)'' in 
                subparagraph (A), and
                    (B) by striking ``and who has the same principal 
                place of abode as the taxpayer for more than one-half 
                of such taxable year'' in subparagraphs (B) and (C).
            (2) Expenses for care of dependent outside of home taken 
        into account.--
                    (A) In general.--Paragraph (2) of section 21(b) of 
                such Code is amended by striking subparagraph (B) and 
                by redesignating subparagraphs (C) and (D) as 
                subparagraphs (B) and (C), respectively.
                    (B) Conforming amendment.--Subparagraph (B) of 
                section 21(b)(2) of such Code, as redesignated by 
                subparagraph (A), is amended by striking ``a dependent 
                care center'' and all that follows and inserting ``a 
                dependent care center shall be taken into account only 
                if such center complies with all applicable laws and 
                regulations of a State or unit of local government.''.
    (c) Retirees Made Eligible for Credit.--Subsection (f) of section 
21 of such Code is amended--
            (1) by striking ``The Secretary'' and inserting the 
        following:
            ``(1) In general.--The Secretary'', and
            (2) by adding at the end the following new paragraph:
            ``(2) Eligibility of retirees for credit.--The Secretary 
        shall prescribe regulations under which retirees may be 
        eligible for the credit provided under this section. Such 
        regulations may deem such retirees to be gainfully employed and 
        to have earned income, to such extent and in such amounts as 
        the Secretary determines appropriate, for purposes of this 
        section.''.
    (d) Credit Made Refundable.--
            (1) In general.--Part IV of subchapter A of chapter 1 of 
        such Code is amended--
                    (A) by redesignating section 36 as section 37,
                    (B) by moving section 21, as otherwise amended by 
                this section, after section 35, and
                    (C) by redesignating such section 21 as section 36.
            (2) Conforming amendments.--
                    (A) Paragraph (2) of section 1324(b) of title 31, 
                United States Code, is amended by inserting ``or 36'' 
                after ``section 35''.
                    (B) The table of sections for subpart A of such 
                part is amended by striking the item relating to 
                section 21.
                    (C) The table of sections for subpart C of such 
                part is amended by redesignating the item relating to 
                section 36 as an item relating to section 37 and by 
                inserting after the item relating to section 35 the 
                following new item:

``Sec. 36. Expenses for household and dependent care services necessary 
                            for gainful employment.''.
    (e) Certain Prior Improvements to Credit Made Permanent.--Section 
901 of the Economic Growth and Tax Relief Reconciliation Act of 2001 
shall not apply to the amendments made by section 204 of such Act.
    (f) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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