[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7252 Introduced in House (IH)]
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118th CONGRESS
2d Session
H. R. 7252
To amend the Internal Revenue Code of 1986 to enhance the Child and
Dependent Care Tax Credit and make the credit fully refundable for
certain taxpayers.
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IN THE HOUSE OF REPRESENTATIVES
February 6, 2024
Mr. Davis of Illinois (for himself, Ms. DelBene, Ms. Sanchez, Mr.
Blumenauer, Mr. Schneider, Mr. Boyle of Pennsylvania, Ms. Moore of
Wisconsin, Mr. Beyer, Mr. Evans, Ms. Sewell, Mrs. Cherfilus-McCormick,
Mr. Carson, Mr. Gomez, and Ms. Chu) 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 enhance the Child and
Dependent Care Tax Credit and make the credit fully refundable for
certain taxpayers.
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 2024''.
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.--
``(A) In general.--For purposes of paragraph (1),
the term `applicable percentage' means 50 percent
reduced (but not below the phaseout percentage) by 1
percentage point for each $2,000 (or fraction thereof)
by which the taxpayer's adjusted gross income for the
taxable year exceeds $125,000.
``(B) Phaseout percentage.--For purposes of
subparagraph (A), the term `phaseout percentage' means
20 percent reduced (but not below zero) by 1 percentage
point for each $2,000 (or fraction thereof) by which
the taxpayer's adjusted gross income for the taxable
year exceeds $400,000.''.
(b) Increase in Dollar Limit on Amount Creditable.--Subsection (c)
of section 21 of the Internal Revenue Code of 1986 is amended--
(1) in paragraph (1), by striking ``$3,000'' and inserting
``$8,000''; and
(2) in paragraph (2), by striking ``$6,000'' and inserting
``$16,000''.
(c) Special Rule for Married Couples Filing Separate Returns.--
Paragraph (2) of section 21(e) of the Internal Revenue Code of 1986 is
amended to read as follows:
``(2) Married couples filing separate returns.--
``(A) In general.--In the case of married
individuals who do not file a joint return for the
taxable year--
``(i) the applicable percentage under
subsection (a)(2) and the number of qualifying
individuals and aggregate amount excludable
under section 129 for purposes of subsection
(c) shall be determined with respect to each
such individual as if the individual had filed
a joint return with the individual's spouse,
and
``(ii) the aggregate amount of the credits
allowed under this section for such taxable
year with respect to both spouses shall not
exceed the amount which would have been allowed
under this section if the individuals had filed
a joint return.
``(B) Regulations.--The Secretary shall prescribe
such regulations or other guidance as is necessary to
carry out the purposes of this subsection.''.
(d) Adjustment for Inflation.--Section 21 of the Internal Revenue
Code of 1986 is amended by adding at the end the following new
subsection:
``(i) Inflation Adjustment.--
``(1) In general.--In the case of a calendar year beginning
after 2024, the $125,000 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 2023' 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 Made Refundable.--Section 21(g) of the Internal Revenue
Code of 1986 is amended to read as follows:
``(g) Credit Made Refundable for Certain Individuals.--If the
taxpayer (in the case of a joint return, either spouse) has a principal
place of abode in the United States (determined as provided in section
32) for more than one-half of the taxable year, the credit allowed
under subsection (a) shall be treated as a credit allowed under subpart
C (and not allowed under this subpart).''.
(f) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2023.
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