II 112th CONGRESS 1st Session S. 435 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.

1.

Short title

This Act may be cited as the Child and Dependent Care FSA Enhancement Act.

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.