[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3434 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 3434

  To amend the Internal Revenue Code of 1986 to modify the credit for 
   expenses for household and dependent care services necessary for 
                          gainful employment.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 30, 2009

   Mr. Donnelly of Indiana 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 modify the credit for 
   expenses for household and dependent care services necessary for 
                          gainful employment.

    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 ``Tax Relief for Working Caregivers 
Act of 2009''.

SEC. 2. MODIFICATION OF CREDIT FOR EXPENSES FOR HOUSEHOLD AND DEPENDENT 
              CARE SERVICES NECESSARY FOR GAINFUL EMPLOYMENT.

    (a) Increased Phaseout Threshold.--Paragraph (2) of section 21(a) 
of the Internal Revenue Code of 1986 (defining applicable percentage) 
is amended by striking ``$15,000'' and inserting ``$75,000''.
    (b) Credit Allowed for Costs Incurred to Care for Parents and 
Grandparents Who Do Not Live With the Taxpayer.--
            (1) In general.--Paragraph (1) of section 21(b) of the 
        Internal Revenue Code of 1986 (relating to qualifying 
        individual) is amended by striking ``or'' at the end of 
        subparagraph (B), by striking the period at the end of 
        subparagraph (C) and inserting ``, or'', and by adding at the 
        end the following new subparagraph:
                    ``(D) a dependent of the taxpayer (as defined in 
                section 152, determined without regard to subsections 
                (b)(1), (b)(2), and (d)(1)(B)) who is the father or 
                mother of the taxpayer (or an ancestor of such father 
                or mother) and who is physically or mentally incapable 
                of caring for himself or herself.''.
            (2) Conforming amendment.--Section 21(b)(1)(B) of such Code 
        is amended by inserting ``(other than a dependent described in 
        subparagraph (D))'' after ``and (d)(1)(B))''.
    (c) Inflation Adjustment.--Subsection (e) of section 21 of such 
Code is amended by adding at the end the following new paragraph:
            ``(11) Inflation adjustment.--
                    ``(A) In general.--In the case of any taxable year 
                beginning after 2010, the dollar amounts in paragraphs 
                (1) and (2) of subsection (c) shall each be increased 
                by an amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(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 `calendar year 2009' 
                        for `calendar year 1992' in subparagraph (B) 
                        thereof.
                    ``(B) Rounding.--If any amount as adjusted under 
                subparagraph (A) is not a multiple of $1,000, such 
                amount shall be rounded to the next lowest multiple of 
                $1,000.''.
    (d) Certain Prior Amendments 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.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2009.
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