Child and Dependent Care Tax Credit Enhancement Act of 2015

Summary: Child and Dependent Care Tax Credit Enhancement Act of 2015 Amends the Internal Revenue Code, with respect to the tax credit for employment-related expenses incurred for the care of a taxpayer's dependent, to: (1) increase to $120,000, the adjusted gross income threshold level above which such credit is incrementally reduced; (2) increase the dollar limit on the allowable amount of such credit; (3) allow an inflation adjustment to the threshold amount and the maximum credit amounts, beginning after 2016; and (4) make such credit refundable. 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Child and Dependent Care Tax Credit 
Enhancement Act of 2015''.

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--
                    ``(A) in the case of employment-related expenses 
                incurred for the care of a qualifying individual who 
                has not attained 5 years of age before the close of the 
                taxable year, 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, and
                    ``(B) in the case of any employment-related 
                expenses which are not described in subparagraph (A), 
                35-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.--Paragraphs (1) 
and (2) of section 21(c) of such Code are amended to read as follows:
            ``(1) in the case of 1 qualifying individual with respect 
        to the taxpayer for such taxable year--
                    ``(A) if such qualifying individual has attained 5 
                years of age before the close of the taxable year, 
                $3,000, or
                    ``(B) if such qualifying individual has not 
                attained 5 years of age before the close of the taxable 
                year, $6,000, or
            ``(2) in the case of 2 or more qualifying individuals with 
        respect to the taxpayer for such taxable year--
                    ``(A) if 1 of such qualifying individuals has not 
                attained 5 years of age before the close of the taxable 
                year, $9,000, or
                    ``(B) if 2 or more of such qualifying individuals 
                have not attained 5 years of age before the close of 
                the taxable year, $12,000.''.
    (c) 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 2016, the $120,000 dollar amounts in subparagraphs (A) 
        and (B) of subsection (a)(2) 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 2015' for `calendar year 1992' in 
                subparagraph (B) 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.''.
    (d) 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.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2015.