[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 1290 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                S. 1290

  To amend the Internal Revenue Code of 1986 to expand the income tax 
deduction for dependent care to include part-time students for purposes 
             of calculating earned income under the credit.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 18, 2009

Mrs. Gillibrand introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to expand the income tax 
deduction for dependent care to include part-time students for purposes 
             of calculating earned income under the credit.

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

SECTION 1. EXPANSION OF DEPENDENT CARE CREDIT.

    (a) In General.--Paragraph (7) of section 21(e) of the Internal 
Revenue Code of 1986 is amended to read as follows:
            ``(7) Student.--
                    ``(A) In general.--The term `student' means an 
                individual who during each of 5 calendar months during 
                the taxable year is--
                            ``(i) a full-time student, or
                            ``(ii) an eligible part-time student,
                at an educational organization.
                    ``(B) Eligible part-time student.--The term 
                `eligible part-time student', with respect to any 
                calendar month, means an individual who is enrolled 
                during such month in at least \1/2\ of the credit hours 
                in which a full-time student in such individual's 
                degree program would be enrolled during a comparable 
                month.
                    ``(C) Special rule.--In the case of an eligible 
                part-time student, with respect to any calendar month--
                            ``(i) In general.--Each of the dollar 
                        amounts in subsection (d)(2) shall be reduced 
                        by the amount that bears the same ratio to such 
                        dollar amount as such student's applicable 
                        credit reduction amount bears to the number of 
                        credit hours in which a full-time student in 
                        such individual's degree program would be 
                        enrolled during a comparable month.
                            ``(ii) Applicable credit reduction 
                        amount.--The applicable credit reduction amount 
                        is the amount that is the excess of--
                                    ``(I) the number of credit hours in 
                                which a full-time student in the 
                                individual's degree program would be 
                                enrolled during a comparable month, 
                                over
                                    ``(II) the number of credit hours 
                                in which the individual is enrolled 
                                during such month.''.
    (b) Conforming Amendment.--Paragraph (2) of section 21(d) of the 
Internal Revenue Code of 1986 is amended by inserting ``(or an eligible 
part-time student, subject to the rule under subsection (e)(7)(C))'' 
after ``a full-time student''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2009.
                                 <all>