Child CARE Act

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Child Care Access and Refundability 
Expansion Act'' or as the ``Child CARE Act''.

SEC. 2. CREDIT FOR DEPENDENT CARE EXPENSES.

    (a) Credit Made Refundable.--
            (1) In general.--The Internal Revenue Code of 1986 is 
        amended by redesignating section 21 as section 36C and by 
        moving such section after section 36B.
            (2) Credit not allowed for services provided outside the 
        united states.--Section 36C(b)(2)(A) of such Code, as 
        redesignated by this section, is amended by adding at the end 
        the following: ``Such term shall not include any amount paid 
        for services provided outside the United States.''.
            (3) Conforming amendments.--
                    (A) Section 23(f)(1) of such Code is amended by 
                striking ``section 21(e)'' and inserting ``section 
                36C(e)''.
                    (B) Section 35(g)(6) of such Code is amended by 
                striking ``section 21(e)'' and inserting ``section 
                36C(e)''.
                    (C) Section 36C(a)(1) of such Code, as redesignated 
                by this section, is amended by striking ``this 
                chapter'' and inserting ``this subtitle''.
                    (D) Section 129(a)(2)(C) of such Code is amended by 
                striking ``section 21(e)'' and inserting ``section 
                36C(e)''.
                    (E) Section 129(b)(2) of such Code is amended by 
                striking ``section 21(d)(2)'' and inserting ``section 
                36C(d)(2)''.
                    (F) Section 129(e)(1) of such Code is amended by 
                striking ``section 21(b)(2)'' and inserting ``section 
                36C(b)(2)''.
                    (G) Section 213(e) of such Code is amended by 
                striking ``section 21'' and inserting ``section 36C''.
                    (H) Section 6211(b)(4)(A) of such Code is amended 
                by inserting ``36C,'' after ``36B,''.
                    (I) Section 6213(g)(2)(H) of such Code is amended 
                by striking ``section 21'' and inserting ``section 
                36C''.
                    (J) Section 6213(g)(2)(L) of such Code is amended 
                by striking ``section 21, 24, 32, or 6428'' and 
                inserting ``section 24, 32, 36C, or 6428''.
                    (K) Paragraph (2) of section 1324(b) of title 31, 
                United States Code, is amended by inserting ``36C,'' 
                after ``36B,''.
                    (L) The table of sections for subpart A of part IV 
                of subchapter A of chapter 1 of the Internal Revenue 
                Code of 1986 is amended by striking the item relating 
                to section 21.
                    (M) The table of sections for subpart C of part IV 
                of subchapter A of chapter 1 of such Code is amended by 
                inserting after the item relating to section 36B the 
                following new item:

``Sec. 36C. Expenses for household and dependent care services 
                            necessary for gainful employment.''.
    (b) Increase in Dollar Limitation.--Section 36C(c) of such Code, as 
redesignated by this section, is amended--
            (1) by striking ``$3,000'' in paragraph (1) and inserting 
        ``$8,000'', and
            (2) by striking ``$6,000'' in paragraph (2) and inserting 
        ``twice the dollar amount in effect under paragraph (1)''.
    (c) Credit Allowed for 50 Percent of Qualified Expenses.--Section 
36C(a)(2) of such Code, as redesignated by this section, is amended by 
striking ``35 percent'' and all that follows and inserting ``50 
percent.''.
    (d) Income Limitation.--Section 36C(a) of such Code, as 
redesignated by this section, is amended by adding at the end the 
following new paragraph:
            ``(3) Income limitation.--No credit shall be allowed under 
        paragraph (1) with respect to any taxpayer for any taxable year 
        if the taxpayer's adjusted gross income for such taxable year 
        exceeds $200,000.''.
    (e) Inflation Adjustment of Dollar and Income Limitations.--Section 
36C(e) of such Code, as redesignated by this section, is amended by 
adding at the end the following new paragraph:
            ``(11) Inflation adjustment.--
                    ``(A) In general.--In the case of any taxable year 
                beginning in a calendar year after 2015, the $8,000 
                amount in subsection (c)(1) and the $200,000 amount in 
                subsection (a)(3) 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 2014' 
                        for `calendar year 1992' in subparagraph (B) 
                        thereof.
                    ``(B) Rounding.--Any increase determined under 
                subparagraph (A) shall be rounded to the nearest 
                multiple of $100.''.
    (f) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2014.

SEC. 3. CREDIT FOR EDUCATION OF EMPLOYEES OF CHILD CARE CENTERS.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 45S. CHILD CARE CENTER EDUCATION CREDIT.

    ``(a) In General.--For the purposes of section 38, the child care 
center education credit determined under this section for the taxable 
year is an amount equal to 50 percent of so much of the child care 
educational expenses paid or incurred by the taxpayer with respect to 
the operation of a qualified child care center during the taxable year.
    ``(b) Limitation.--The child care educational expenses taken into 
account under subsection (a) with respect to any eligible employee of 
the taxpayer for any taxable year shall not exceed $1,000.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Child care educational expenses.--
                    ``(A) In general.--The term `child care educational 
                expenses' means, with respect to any eligible employee, 
                expenses paid or incurred by the taxpayer to an 
                eligible educational institution (as defined in section 
                25A(f)(2)) for classes related to early childhood 
                education or development or child care certification.
                    ``(B) Eligible employee.--The term `eligible 
                employee' means any employee of the taxpayer whose 
                primary job function is providing care to children in a 
                qualified child care center.
            ``(2) Qualified child care center.--The term `qualified 
        child care center' means any dependent care center (as defined 
        in section 36C(b)(2)(D)) located in the United States which 
        meets the requirements of section 36C(b)(2)(C)(i).
    ``(d) Denial of Double Benefit.--No deduction shall be allowed 
under this chapter for the portion of the expenses otherwise allowable 
as a deduction that are taken into account in determining the credit 
under this section for the taxable year.''.
    (b) Credit To Be Part of General Business Credit.--Subsection (b) 
of section 38 of such Code is amended by striking ``plus'' at the end 
of paragraph (35), by striking the period at the end of paragraph (36) 
and inserting ``, plus'', and by adding at the end the following new 
paragraph:
            ``(37) the child care center education credit determined 
        under section 45S(a).''.
    (c) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by adding 
at the end the following new item:

``Sec. 45S. Child care center education credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to expenses paid or incurred after the date of the enactment of 
this Act, in taxable years ending after such date.

Summary: Child Care Access and Refundability Expansion Act or the Child CARE Act This bill 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) make such credit refundable, (2) deny such creditnbsp. For services provided outside the United States, (3) increase the dollar limit on the allowable amount of such credit and the percentage rate for qualified expenses, (4) deny such credit for taxpayers whose adjusted gross income exceeds $200,000 in a taxable year. And (5) allow an annual inflation adjustment to the threshold amount for reducing such credit and the maximum allowable credit amount, beginning after 2015. The bill also allows a new tax credit for 50 of the child care educational expenses, up to a maximum of $1,000 in any taxable year,nbsp. Paid with respect to the operation of a qualified child care center.