[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 478 Introduced in House (IH)]
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118th CONGRESS
1st Session
H. R. 478
To amend the Internal Revenue Code of 1986 to allow for the inclusion
of additional expenses in dependent care FSAs, and for other purposes.
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IN THE HOUSE OF REPRESENTATIVES
January 24, 2023
Mrs. Miller of West Virginia 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 of 1986 to allow for the inclusion
of additional expenses in dependent care FSAs, 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 ``Working Families Childcare Access
Act of 2023'' or the ``WFCA Act of 2023''.
SEC. 2. ADDITIONAL EXPENSES INCLUDED IN DEPENDENT CARE ASSISTANCE
PROGRAMS.
(a) In General.--Section 129(e) of the Internal Revenue Code of
1986 is amended--
(1) in paragraph (1), by striking ``or provision of,
those'' and inserting ``or provision of, qualified adoption
expenses (within the meaning of section 137(d)), qualified
sports expenses, qualified tutoring expenses, qualifying art
expenses, or those'', and
(2) by adding at the end the following new paragraphs:
``(10) Qualified sports expenses.--The term `qualified
sports expenses' means expenses paid or incurred for the
participation or instruction of a dependent in a program of
physical exercise or physical activity.
``(11) Qualified tutoring expenses.--The term `qualified
tutoring expenses' means expenses paid or incurred for the
participation or instruction of a dependent in virtual or in-
person--
``(A) individual academic tutoring, or
``(B) small-group academic tutoring in a group of
four students or fewer.
``(12) Qualified art expenses.--The term `qualified art
expenses' means expenses paid or incurred for the participation
or instruction of a dependent in a program of music or art.''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2022.
SEC. 3. DEPENDENT CARE EXPENSES ALLOWED FOR CHILDREN AND DEPENDENTS UP
TO AGE 15.
(a) In General.--Section 129(e)(1) of the Internal Revenue Code of
1986, as amended by section 1, is amended--
(1) by striking ``or provision of, qualified adoption
expenses'' and inserting ``or provision of, with respect to a
qualifying individual, qualified adoption expenses'',
(2) by striking ``The term'' and inserting the following:
``(A) In general.--The term'', and
(3) by adding at the end the following:
``(B) Special rule.--For purposes of subparagraph
(A), the term `qualifying individual' has the meaning
given in paragraph (1) of section 21(b), except such
paragraph shall be applied by substituting `age 15' for
`age 13'.''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2022.
SEC. 4. CARRY FORWARD OF UNUSED BENEFITS.
(a) In General.--Section 129(d) of the Internal Revenue Code of
1986 is amended by adding at the end the following new paragraph:
``(10) Benefit carry forward rules.--
``(A) In general.--A plan meets the requirements of
this paragraph if it provides for the automatic carry
forward from the close of a plan year to the succeeding
plan year of any aggregate unused contributions
totaling $20 or greater.
``(B) Small balances.--For purposes of subparagraph
(A), if an eligible employee carries a balance of less
than $20 at the end of a plan year, such employee may
elect to carry forward such balance to the next plan
year or, if such employee makes no election, such
balance may be forfeited.
``(C) Exclusion from gross income.--No amount shall
be included in gross income under this chapter by
reason of any carry forward under this paragraph.
``(D) Coordination limits.--The maximum amount
which may be contributed to a dependent care assistance
flexible spending arrangement for any year to which an
unused amount is carried under this paragraph shall not
be reduced by such unused amount.''.
(b) Conforming Amendment.--Section 125(d)(2) of such Code is
amended by adding at the end the following new subparagraph:
``(E) Exception for dependent care assistance
flexible spending arrangements.--Subparagraph (A) shall
not apply to a dependent care assistance flexible
spending arrangement which conforms to the benefit
carry forward rules of section 129(d)(10).''.
(c) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2022.
SEC. 5. INCREASE OF BENEFITS FOR DEPENDENT CARE ASSISTANCE PROGRAMS.
(a) In General.--Section 129(a)(2)(A) of the Internal Revenue Code
of 1986 is amended by striking ``$5,000 ($2,500'' and inserting
``$15,000 ($7,500''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2022.
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