I 112th CONGRESS 1st Session H. R. 3540 IN THE HOUSE OF REPRESENTATIVES December 1, 2011 Mr. Carter (for himself, Mr. Smith of Texas, and Mr. Courtney) 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 tax benefits for child care assistance for military families.

1.

Short title

This Act may be cited as the Military Families Child Care Assistance Act of 2011.

2.

Increase in tax benefits for child care assistance for military families

(a)

Dependent care tax credit

Subsection (e) of section 21 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (11)

Increase in limitation for military families

In the case of an individual who has served on active duty (other than active duty for training) in the Armed Forces of the United States for a period of 120 days or more beginning after September 11, 2001, paragraphs (1) and (2) of subsection (c) shall be applied by substituting $5,000 and $10,000 for $3,000 and $6,000, respectively. . (b)

Employer-Provided dependent care assistance programs

Paragraph (2) of section 129(a) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph: (D)

Increase in limitation for military families

In the case of an individual who has served on active duty (other than active duty for training) in the Armed Forces of the United States for a period of 120 days or more beginning after September 11, 2001, subparagraph (A) shall be applied by substituting $10,000 and $5,000 for $5,000 and $2,500, respectively. . (c)

Effective date

The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2011.