[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 435 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                 S. 435

 To amend the Internal Revenue Code of 1986 to increase the exclusion 
            for employer-provided dependent care assistance.


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                   IN THE SENATE OF THE UNITED STATES

                             March 2, 2011

Mr. Burr (for himself, Mr. Johanns, and 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 increase the exclusion 
            for employer-provided dependent care assistance.

    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 ``Child and Dependent Care FSA 
Enhancement Act''.

SEC. 2. INCREASE IN EXCLUSION FOR EMPLOYER-PROVIDED DEPENDENT CARE 
              ASSISTANCE.

    (a) In General.--Subparagraph (A) of section 129(a)(2) of the 
Internal Revenue Code of 1986 (relating to dependent care assistance 
programs) is amended by striking ``$5,000 ($2,500'' and inserting 
``$7,500 (half such dollar amount''.
    (b) Inflation Adjustment.--Paragraph (2) of section 129(a) of such 
Code is amended by redesignating subparagraph (C) as subparagraph (D) 
and by inserting after subparagraph (B) the following new subparagraph:
                    ``(C) Inflation adjustment.--In the case of any 
                taxable year beginning in a calendar year after 2011, 
                the $7,500 amount in subparagraph (A) shall 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 2010' 
                        for `calendar year 1992' in subparagraph (B) 
                        thereof.
                Any increase determined under the preceding sentence 
                shall be rounded to the nearest multiple of $100.''.
    (c) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2010.
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