[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 820 Introduced in Senate (IS)]

114th CONGRESS
  1st Session
                                 S. 820

  To amend the Internal Revenue Code of 1986 to enhance the Child and 
    Dependent Care Tax Credit and make the credit fully refundable.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 19, 2015

   Mr. Casey 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 Child and 
    Dependent Care Tax Credit and make the credit fully refundable.

    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 Tax Credit 
Enhancement Act of 2015''.

SEC. 2. ENHANCEMENT OF CHILD AND DEPENDENT CARE TAX CREDIT.

    (a) In General.--Paragraph (2) of section 21(a) of the Internal 
Revenue Code of 1986 is amended to read as follows:
            ``(2) Applicable percentage.--For purposes of paragraph 
        (1), the term `applicable percentage' means--
                    ``(A) in the case of employment-related expenses 
                incurred for the care of a qualifying individual who 
                has not attained 5 years of age before the close of the 
                taxable year, 50-percent reduced (but not below 20 
                percent) by 1 percentage point for each $2,000 (or 
                fraction thereof) by which the taxpayer's adjusted 
                gross income for the taxable year exceeds $120,000, and
                    ``(B) in the case of any employment-related 
                expenses which are not described in subparagraph (A), 
                35-percent reduced (but not below 20 percent) by 1 
                percentage point for each $2,000 (or fraction thereof) 
                by which the taxpayer's adjusted gross income for the 
                taxable year exceeds $120,000.''.
    (b) Increase in Dollar Limit on Amount Creditable.--Paragraphs (1) 
and (2) of section 21(c) of such Code are amended to read as follows:
            ``(1) in the case of 1 qualifying individual with respect 
        to the taxpayer for such taxable year--
                    ``(A) if such qualifying individual has attained 5 
                years of age before the close of the taxable year, 
                $3,000, or
                    ``(B) if such qualifying individual has not 
                attained 5 years of age before the close of the taxable 
                year, $6,000, or
            ``(2) in the case of 2 or more qualifying individuals with 
        respect to the taxpayer for such taxable year--
                    ``(A) if 1 of such qualifying individuals has not 
                attained 5 years of age before the close of the taxable 
                year, $9,000, or
                    ``(B) if 2 or more of such qualifying individuals 
                have not attained 5 years of age before the close of 
                the taxable year, $12,000.''.
    (c) Adjustment for Inflation.--Section 21 of such Code is amended--
            (1) by redesignating subsection (f) as subsection (g), and
            (2) by inserting after subsection (e) the following new 
        subsection:
    ``(f) Inflation Adjustment.--
            ``(1) In general.--In the case of a calendar year beginning 
        after 2016, the $120,000 dollar amounts in subparagraphs (A) 
        and (B) of subsection (a)(2) and 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, determined by substituting 
                `calendar year 2015' for `calendar year 1992' in 
                subparagraph (B) thereof.
            ``(2) Rounding.--If any dollar amount, after being 
        increased under paragraph (1), is not a multiple of $100, such 
        dollar amount shall be rounded to the next lowest multiple of 
        $100.''.
    (d) Credit To Be Refundable.--
            (1) In general.--The Internal Revenue Code of 1986 is 
        amended--
                    (A) by redesignating section 21 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 (H) of section 6213(g)(2) of such 
                Code is amended by striking ``section 21'' and 
                inserting ``section 36C''.
                    (I) Subparagraph (L) of section 6213(g)(2) of such 
                Code is amended by striking ``section 21, 24, or 32,'' 
                and inserting ``section 24, 32, or 36C,''.
                    (J) Paragraph (2) of section 1324(b) of title 31, 
                United States Code, is amended by inserting ``36C,'' 
                after ``36B,''.
                    (K) 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.''.
                    (L) The table of sections for subpart A of such 
                part IV is amended by striking the item relating to 
                section 21.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2015.
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