I

106TH CONGRESS

1ST SESSION H. R. 963

To amend the Internal Revenue Code of 1986 to allow employers a credit

for a portion of the expenses of providing dependent care services to

employees.

IN THE HOUSE OF REPRESENTATIVES

MARCH 3, 1999

Ms. PRYCE of Ohio (for herself, Mr. ROEMER, Mr. BEREUTER, Mr.

LATOURETTE, Mrs. KELLY, Ms. GRANGER, Mr. FROST, Mr. SHOWS, Mr.

HINCHEY, Mrs. CLAYTON, Mr. CUMMINGS, Mrs. MYRICK, Mr. WALSH,

Ms. NORTON, Mr. CLEMENT, Mr. KING, Mr. VENTO, Ms. LOFGREN, Ms.

DEGETTE, Mr. PAUL, Mr. MEEKS of New York, Mrs. JONES of Ohio,

Mr. SANDLIN, Mr. DEFAZIO, and Mr. FORBES) introduced the following

bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to allow employers a credit for a portion of the expenses of providing

dependent care services to employees.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Child Care Availability

5 Incentive Act’’.
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1 SEC. 2. CREDIT FOR EMPLOYER EXPENSES IN PROVIDING

2 CERTAIN DEPENDENT CARE SERVICES.

3 (a) GENERAL RULE.—Subpart D of part IV of sub4 chapter A of chapter 1 of the Internal Revenue Code of

5 1986 is amended by adding at the end the following new

6 section:

7 ‘‘SEC. 45D. EMPLOYER EXPENSES IN PROVIDING DEPEND8 ENT CARE SERVICES.

9 ‘‘(a) GENERAL RULE.—For purposes of section 38,

10 the employer day care center credit determined under this

11 section for the taxable year is the amount determined

12 under subsection (b) with respect to each qualified day

13 care center of the taxpayer.

14 ‘‘(b) CREDIT PER FACILITY.—For purposes of this

15 section—

16 ‘‘(1) IN GENERAL.—The amount determined

17 under this subsection for any taxable year with re18 spect to any qualified day care facility of the tax19 payer is 50 percent of the excess (if any) of—

20 ‘‘(A) the expenses paid or incurred by the

21 taxpayer during the taxable year in providing

22 dependent care services at such facility for em23 ployees, over

24 ‘‘(B) the aggregate amount received or ac25 crued during the taxable year by the employer

26 for such services.
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1 ‘‘(2) DEPRECIATION ALLOWANCES.—For pur2 poses of paragraph (1), depreciation allowances

3 under section 167 shall be treated as expenses.

4 ‘‘(c) QUALIFIED DAY CARE CENTER.—For purposes

5 of this section, the term ‘qualified day care center’ means

6 any day care center—

7 ‘‘(1) which is operated by the taxpayer exclu8 sively for purposes of providing dependent care serv9 ices to employees,

10 ‘‘(2) which is located on the business premises

11 of the taxpayer or on a site adjacent to such prem12 ises,

13 ‘‘(3) which complies with all applicable laws and

14 regulations of a State or unit of local government,

15 and

16 ‘‘(4) the operation of which is part of a depend17 ent care assistance program (as defined in section

18 129(d)).’’

19 (b) CREDIT MADE PART OF GENERAL BUSINESS

20 CREDIT.—Subsection (b) of section 38 of such Code is

21 amended by striking ‘‘plus’’ at the end of paragraph (11),

22 by striking the period at the end of paragraph (12) and

23 inserting ‘‘, plus’’, and by adding at the end thereof the

24 following new paragraph:
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1 ‘‘(13) the employer day care center credit deter2 mined under section 45D(a).’’

3 (c) DENIAL OF DOUBLE BENEFIT.—Section 280C of

4 such Code is amended by adding at the end thereof the

5 following new subsection:

6 ‘‘(d) CREDIT FOR EMPLOYER DAY CARE CENTER

7 EXPENSES.—No deduction shall be allowed for that por8 tion of the expenses referred to in section 45D(b)(1)(A)

9 otherwise allowable as a deduction for the taxable year

10 which is equal to the amount of the credit determined for

11 such taxable year under section 45D(a).’’

12 (d) CLERICAL AMENDMENT.—The table of sections

13 for subpart D of part IV of subchapter A of chapter 1

14 of such Code is amended by adding at the end the follow15 ing new item:

‘‘Sec. 45D. Employer expenses in providing dependent care services.’’

16 (e) EFFECTIVE DATE.—The amendments made by

17 this section shall apply to taxable years beginning after

18 the date of the enactment of this Act.

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