[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1967 Introduced in House (IH)]
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116th CONGRESS
1st Session
H. R. 1967
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 HOUSE OF REPRESENTATIVES
March 28, 2019
Mr. Danny K. Davis of Illinois (for himself and Ms. DelBene) 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 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 2019''.
SEC. 2. ENHANCEMENT OF CHILD AND DEPENDENT CARE TAX CREDIT.
(a) In General.--Section 21(a)(2) 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 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.''.
(b) Increase in Dollar Limit on Amount Creditable.--Section 21(c)
of such Code is amended--
(1) in paragraph (1), by striking ``$3,000'' and inserting
``$6,000'', and
(2) in paragraph (2), by striking ``$6,000'' and inserting
``$12,000''.
(c) Special Rule for Married Couples Filing Separate Returns.--
Section 21(e)(2) of such Code is amended to read as follows:
``(2) Married couples filing separate returns.--
``(A) In general.--In the case of a married
individual who files a separate return for a taxable
year--
``(i) the limits under subsections (a) and
(c) shall be applied to the individual and the
individual's spouse as if they had filed a
joint return, and
``(ii) the aggregate amount of the credit
allowed under this section for such taxable
year to both spouses shall not exceed the
amount that would have been allowed if the
spouses had filed a joint return.
``(B) Regulations.--The Secretary shall prescribed
such regulations or other guidance as is necessary to
carry out the purposes of this subsection.''.
(d) 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 2020, the $120,000 amount in paragraph (2) of subsection
(a) 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 2019' for `calendar year 2016' in
subparagraph (A)(ii) 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.''.
(e) 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 amendment.--
(A) Section 23(f)(1) of the Internal Revenue Code
of 1986 is amended by striking ``21(e)'' and inserting
``36C(e)''.
(B) Section 35(g)(6) of such Code is amended by
striking ``21(e)'' and inserting ``36C(e)''.
(C) Section 36C(a)(1) of such Code (as redesignated
by paragraph (1)) is amended by striking ``this
chapter'' and inserting ``this subtitle''.
(D) Section 129(a)(2)(C) of such Code is amended by
striking ``section 21(e)'' and inserting ``section
36C(e)''.
(E) Section 129(b)(2) of such Code is amended by
striking ``section 21(d)(2)'' and inserting ``section
36C(d)(2)''.
(F) Section 129(e)(1) of such Code is amended by
striking ``section 21(b)(2)'' and inserting ``section
36C(b)(2)''.
(G) Section 213(e) of such Code is amended by
striking ``section 21'' and inserting ``section 36C''.
(H) Section 6213(g)(2)(H) of such Code is amended
by striking ``section 21'' and inserting ``section
36C''.
(I) Section 6213(g)(2)(L) of such Code is amended
by striking ``section 21, 24, or 32'' and inserting
``section 24, 32, or 36C''.
(J) Section 1324(b)(2) 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.
(f) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2019.
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