[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 661 Introduced in Senate (IS)]

114th CONGRESS
  1st Session
                                 S. 661

  To amend the Internal Revenue Code of 1986 to enhance the dependent 
                care tax credit, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 4, 2015

  Mrs. Murray (for herself, Mrs. Shaheen, Mr. Brown, Mr. Durbin, Mr. 
   Reid, Mr. Schumer, Ms. Stabenow, Mr. Wyden, 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 enhance the dependent 
                care tax credit, and for other purposes.

    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 ``Helping Working Families Afford 
Child Care Act''.

SEC. 2. ENHANCEMENT OF THE DEPENDENT CARE TAX CREDIT.

    (a) Increase in Dependent Care Tax Credit.--
            (1) Increase in incomes eligible for full credit.--
        Paragraph (2) of section 21(a) of the Internal Revenue Code of 
        1986 is amended to read as follows:
            ``(2) Applicable percentage defined.--For purposes of 
        paragraph (1), the term `applicable percentage' means 35 
        percent reduced (but not below zero) by 1 percentage point for 
        each $5,000 (or fraction thereof) by which the taxpayer's 
        adjusted gross income for the taxable year exceeds $110,000.''.
            (2) Increase in dollar limit on amount creditable.--
        Subsection (c) of section 21 of the Internal Revenue Code of 
        1986 is amended--
                    (A) by striking ``$3,000'' in paragraph (1) and 
                inserting ``$8,000'', and
                    (B) by striking ``$6,000'' in paragraph (2) and 
                inserting ``$16,000''.
            (3) Inflation adjustment.--Section 21 of the Internal 
        Revenue Code of 1986 is amended--
                    (A) by redesignating subsection (f) as subsection 
                (g), and
                    (B) by inserting after subsection (e) the following 
                new subsection:
    ``(f) Inflation Adjustment.--
            ``(1) In general.--In the case of any taxable year 
        beginning after 2016, the $110,000 amount in subsection (a)(2) 
        and each of the dollar amounts in subsection (c) shall each be 
        increased by an amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins, by substituting `2015' for 
                `1992' in subparagraph (B) thereof.
            ``(2) Rounding.--The amount of any increase under paragraph 
        (1) shall be rounded--
                    ``(A) for purposes of the dollar amount in 
                subsection (a)(2), the nearest multiple of $1,000, and
                    ``(B) for purposes of the dollar amounts in 
                subsection (c), the nearest multiple of $100.''.
    (b) Dependent Care Tax Credit To Be Refundable.--
            (1) In general.--The Internal Revenue Code of 1986 is 
        amended--
                    (A) by redesignating section 21, as amended by 
                subsection (a), as section 36C, and
                    (B) by moving section 36C, as so redesignated, from 
                subpart A of part IV of subchapter A of chapter 1 to 
                the location immediately before section 37 in subpart C 
                of part IV of subchapter A of chapter 1.
            (2) Technical amendments.--
                    (A) Paragraph (1) of section 23(f) of the Internal 
                Revenue Code of 1986 is amended by striking ``21(e)'' 
                and inserting ``36C(e)''.
                    (B) Paragraph (6) of section 35(g) of such Code is 
                amended by striking ``21(e)'' and inserting ``36C(e)''.
                    (C) Paragraph (1) of section 36C(a) of such Code 
                (as redesignated by paragraph (1)) is amended by 
                striking ``this chapter'' and inserting ``this 
                subtitle''.
                    (D) Subparagraph (C) of section 129(a)(2) of such 
                Code is amended by striking ``section 21(e)'' and 
                inserting ``section 36C(e)''.
                    (E) Paragraph (2) of section 129(b) of such Code is 
                amended by striking ``section 21(d)(2)'' and inserting 
                ``section 36C(d)(2)''.
                    (F) Paragraph (1) of section 129(e) of such Code is 
                amended by striking ``section 21(b)(2)'' and inserting 
                ``section 36C(b)(2)''.
                    (G) Subsection (e) of section 213 of such Code is 
                amended by striking ``section 21'' and inserting 
                ``section 36C''.
                    (H) Subparagraph (A) of section 6211(b)(4) of such 
                Code is amended by inserting ``36C,'' after ``36B,''.
                    (I) Subparagraph (H) of section 6213(g)(2) of such 
                Code is amended by striking ``section 21'' and 
                inserting ``section 36C''.
                    (J) Subparagraph (L) of section 6213(g)(2) of such 
                Code is amended by striking ``section 21, 24, 32,'' and 
                inserting ``section 24, 32, 36C,''.
                    (K) Paragraph (2) of section 1324(b) of title 31, 
                United States Code, is amended by inserting ``36C,'' 
                after ``36B,''.
                    (L) The table of sections for subpart C of part IV 
                of subchapter A of chapter 1 of the Internal Revenue 
                Code of 1986 is amended by inserting after the item 
                relating to section 36B the following:

``Sec. 36C. Expenses for household and dependent care services 
                            necessary for gainful employment.''.
                    (M) The table of sections for subpart A of such 
                part IV of such Code is amended by striking the item 
                relating to section 21.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2015.
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