[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3397 Introduced in House (IH)]
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116th CONGRESS
1st Session
H. R. 3397
To amend the Internal Revenue Code to increase the exclusion for
employer-provided dependent care assistance and to allow individuals to
carry forward dependent care flexible spending arrangement account
balances.
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IN THE HOUSE OF REPRESENTATIVES
June 20, 2019
Mrs. Wagner (for herself, Mr. King of New York, Mr. Stivers, and Mr.
Rodney Davis of Illinois) introduced the following bill; which was
referred to the Committee on Ways and Means
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A BILL
To amend the Internal Revenue Code to increase the exclusion for
employer-provided dependent care assistance and to allow individuals to
carry forward dependent care flexible spending arrangement account
balances.
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
Modernization Act of 2019''.
SEC. 2. INCREASE IN EXCLUSION FOR EMPLOYER-PROVIDED DEPENDENT CARE
ASSISTANCE.
(a) In General.--Section 129(a)(2) of the Internal Revenue Code of
1986 is amended--
(1) by striking ``shall not exceed'' in subparagraph (A)
and all that follows and inserting the following: ``shall not
exceed--
``(i) $8,000 (half such dollar amount in
the case of a separate return by a married
individual) if there is 1 qualifying individual
with respect to the taxpayer during such
taxable year, or
``(ii) $16,000 (half such dollar amount in
the case of such a separate return) if there
are 2 or more qualifying individuals with
respect to the taxpayer during such taxable
year.'', and
(2) by adding at the end the following new subparagraph:
``(D) Qualifying individual.--For purposes of this
paragraph, the term `qualifying individual' has the
meaning given to such term under section 21(b)(1).''.
(b) Inflation Adjustment.--Section 129(a)(2) 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 2020,
the dollar amounts in subparagraph (A) shall each 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 2019'
for `calendar year 2016' in subparagraph
(A)(ii) 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, 2019.
SEC. 3. CARRYFORWARD FOR DEPENDENT CARE FLEXIBLE SPENDING ARRANGEMENT
ACCOUNT BALANCE.
(a) In General.--Section 125 of the Internal Revenue Code of 1986
is amended by redesignating subsections (k) and (l) as subsections (l)
and (m), respectively, and by inserting after subsection (j) the
following new subsection:
``(k) Carryforward.--For purposes of this title, a plan or other
arrangement shall not fail to be treated as a cafeteria plan or
flexible spending arrangement for a plan year merely because such
arrangement provides that an amount not exceeding the amount with
respect to such individual under section 129(a)(2) in effect for the
succeeding plan year may be carried forward to the succeeding plan
year.''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2019.
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