Text: S.931 — 116th Congress (2019-2020)All Information (Except Text)

There is one version of the bill.

Text available as:

Shown Here:
Introduced in Senate (03/28/2019)


116th CONGRESS
1st Session
S. 931


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 28, 2019

Mr. Casey (for himself, Mrs. Murray, Mr. Wyden, Mr. Brown, Mr. Cardin, Ms. Cantwell, Mrs. Gillibrand, Ms. Hassan, Ms. Hirono, Mr. Menendez, Ms. Stabenow, Ms. Cortez Masto, Ms. Klobuchar, Mr. Van Hollen, Mr. Blumenthal, Mr. Bennet, Mr. Whitehouse, Mr. Merkley, Mr. Reed, Mr. Durbin, Mr. Leahy, and Mr. Schumer) 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 2019”.

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 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.—Subsection (c) of section 21 of the Internal Revenue Code of 1986 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.—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—

(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 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.

(f) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2019.