II 

117TH CONGRESS 

2D SESSION S. 4589 

To amend the Internal Revenue Code of 1986 to adjust certain credits 

and deductions for inflation. 

IN THE SENATE OF THE UNITED STATES 

JULY 21, 2022 

Mr. GRASSLEY 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 adjust 

certain credits and deductions for inflation. 

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 ‘‘Family and Commu5 nity Inflation Relief Act of 2022’’. 

6 SEC. 2. CHILD TAX CREDIT. 

7 (a) IN GENERAL.—Subsection (f) of section 24 of the 

8 Internal Revenue Code of 1986 is amended— 


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1 (1) by striking ‘‘TAXABLE YEAR MUST BE

2 FULL TAXABLE YEAR.—Except’’ and inserting 

3 ‘‘SPECIAL RULES.— 

4 ‘‘(1) TAXABLE YEAR MUST BE FULL TAXABLE

5 YEAR.—Except’’, and 

6 (2) by adding at the end the following new 

7 paragraph: 

8 ‘‘(2) ADJUSTMENT FOR INFLATION.— 

9 ‘‘(A) IN GENERAL.—In the case of a tax10 able year beginning after 2021, the $1,000 

11 amount in subsection (a) and each of the dollar 

12 amounts in subsection (b)(2) shall be increased 

13 by an amount equal to— 

14 ‘‘(i) such dollar amount, multiplied by 

15 ‘‘(ii) the cost-of-living adjustment de16 termined under section 1(f)(3) for the cal17 endar year in which the taxable year be18 gins, determined by substituting ‘2020’ for 

19 ‘2016’ in subparagraph (A)(ii) thereof. 

20 ‘‘(B) ROUNDING.—If any increase under 

21 subparagraph (A)— 

22 ‘‘(i) is not a multiple of $100, in the 

23 case of the amount in subsection (a), such 

24 increase shall be rounded to the next low25 est multiple of $100, or 


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1 ‘‘(ii) is not a multiple of $1,000, in 

2 the case of the amounts in subsection 

3 (b)(2), such increase shall be rounded to 

4 the next lowest multiple of $1,000.’’. 

5 (b) SPECIAL RULES FOR TAXABLE YEARS THROUGH

6 2025.— 

7 (1) IN GENERAL.—Subsection (h) of section 24 

8 of such Code is amended by adding at the end the 

9 following new paragraph: 

10 ‘‘(8) ADJUSTMENT FOR INFLATION.— 

11 ‘‘(A) IN GENERAL.—In the case of a tax12 able year beginning after 2021, the $2,000 

13 amount in paragraph (2) and each of the dollar 

14 amounts in paragraph (3) shall be increased by 

15 an amount equal to— 

16 ‘‘(i) such dollar amount, multiplied by 

17 ‘‘(ii) the cost-of-living adjustment de18 termined under section 1(f)(3) for the cal19 endar year in which the taxable year be20 gins, determined by substituting ‘2020’ for 

21 ‘2016’ in subparagraph (A)(ii) thereof. 

22 ‘‘(B) ROUNDING.—If any increase under 

23 subparagraph (A)— 

24 ‘‘(i) is not a multiple of $100, in the 

25 case of the amount in paragraph (2), such 


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1 increase shall be rounded to the next low2 est multiple of $100, or 

3 ‘‘(ii) is not a multiple of $1,000, in 

4 the case of the amounts in paragraph (3), 

5 such increase shall be rounded to the next 

6 lowest multiple of $1,000.’’. 

7 (2) PARTIAL CREDIT FOR CERTAIN OTHER DE8 PENDENTS.—Paragraph (4) of section 24(h) of such 

9 Code is amended by adding at the end the following 

10 new subparagraph: 

11 ‘‘(D) ADJUSTMENT FOR INFLATION.—In 

12 the case of a taxable year beginning after 2021, 

13 the $500 amount in subparagraph (A) shall be 

14 increased by an amount equal to— 

15 ‘‘(i) such dollar amount, multiplied by 

16 ‘‘(ii) the cost-of-living adjustment de17 termined under section 1(f)(3) for the cal18 endar year in which the taxable year be19 gins, determined by substituting ‘2020’ for 

20 ‘2016’ in subparagraph (A)(ii) thereof. 

21 If any increase under this paragraph is not a 

22 multiple of $50, such increase shall be rounded 

23 to the next lowest multiple of $50.’’. 


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1 (c) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to taxable years beginning after 

3 December 31, 2021. 

4 SEC. 3. CREDIT FOR HOUSEHOLD AND DEPENDENT CARE 

5 SERVICES. 

6 (a) IN GENERAL.—Subsection (e) of section 21 of the 

7 Internal Revenue Code of 1986 is amended by adding at 

8 the end the following new paragraph: 

9 ‘‘(11) ADJUSTMENTS FOR INFLATION.— 

10 ‘‘(A) IN GENERAL.—In the case of a tax11 able year beginning after 2021, the $15,000 

12 amount in subsection (a)(2) and the $3,000 

13 and $6,000 amounts in subsection (c) shall 

14 each be increased by an amount equal to— 

15 ‘‘(i) such dollar amount, multiplied by 

16 ‘‘(ii) the cost-of-living adjustment de17 termined under section 1(f)(3) for the cal18 endar year in which the taxable year be19 gins, determined by substituting ‘2020’ for 

20 ‘2016’ in subparagraph (A)(ii) thereof. 

21 ‘‘(B) ROUNDING.—If any increase under 

22 subparagraph (A)— 

23 ‘‘(i) is not a multiple of $100, in the 

24 case of the amounts in subsection (c), such 


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1 increase shall be rounded to the next low2 est multiple of $100, or 

3 ‘‘(ii) is not a multiple of $1,000, in 

4 the case of the amount in subsection 

5 (a)(2), such increase shall be rounded to 

6 the next lowest multiple of $1,000.’’. 

7 (b) EFFECTIVE DATE.—The amendment made by 

8 this section shall apply to taxable years beginning after 

9 December 31, 2021. 

10 SEC. 4. AMERICAN OPPORTUNITY AND LIFETIME LEARN11 ING CREDITS. 

12 (a) AMERICAN OPPORTUNITY TAX CREDIT.—Sub13 section (b) of section 25A of the Internal Revenue Code 

14 of 1986 is amended by adding at the end the following 

15 new paragraph: 

16 ‘‘(5) ADJUSTMENT FOR INFLATION.—In the 

17 case of a taxable year beginning after 2021, the 

18 $2,000 and $4,000 amounts in paragraph (1) shall 

19 each be increased by an amount equal to— 

20 ‘‘(A) such dollar amount, multiplied by 

21 ‘‘(B) the cost-of-living adjustment deter22 mined under section 1(f)(3) for the calendar 

23 year in which the taxable year begins, deter24 mined by substituting ‘2020’ for ‘2016’ in sub25 paragraph (A)(ii) thereof. 


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1 If any increase under this paragraph is not a mul2 tiple of $100, such increase shall be rounded to the 

3 next lowest multiple of $100.’’. 

4 (b) LIFETIME LEARNING CREDIT.—Subsection (c) of 

5 section 25A of the Internal Revenue Code of 1986 is 

6 amended by adding at the end the following new para7 graph: 

8 ‘‘(3) ADJUSTMENT FOR INFLATION.—In the 

9 case of a taxable year beginning after 2021, the 

10 $10,000 amount in paragraph (1) shall be increased 

11 by an amount equal to— 

12 ‘‘(A) such dollar amount, multiplied by 

13 ‘‘(B) the cost-of-living adjustment deter14 mined under section 1(f)(3) for the calendar 

15 year in which the taxable year begins, deter16 mined by substituting ‘2020’ for ‘2016’ in sub17 paragraph (A)(ii) thereof. 

18 If any increase under this paragraph is not a mul19 tiple of $100, such increase shall be rounded to the 

20 next lowest multiple of $100.’’. 

21 (c) LIMITATIONS BASED ON MODIFIED ADJUSTED

22 GROSS INCOME.—Subsection (d) of section 25A of the In23 ternal Revenue Code of 1986 is amended by adding at the 

24 end the following new paragraph: 


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1 ‘‘(3) ADJUSTMENT FOR INFLATION.—In the 

2 case of a taxable year beginning after 2021, each of 

3 the dollar amounts in paragraph (1) shall be in4 creased by an amount equal to— 

5 ‘‘(A) such dollar amount, multiplied by 

6 ‘‘(B) the cost-of-living adjustment deter7 mined under section 1(f)(3) for the calendar 

8 year in which the taxable year begins, deter9 mined by substituting ‘2020’ for ‘2016’ in sub10 paragraph (A)(ii) thereof. 

11 If any increase under this paragraph is not a mul12 tiple of $1,000, such increase shall be rounded to 

13 the next lowest multiple of $1,000.’’. 

14 (d) EFFECTIVE DATE.—The amendments made by 

15 this section shall apply to taxable years beginning after 

16 December 31, 2021. 

17 SEC. 5. DEDUCTION FOR INTEREST ON EDUCATION LOANS. 

18 (a) IN GENERAL.—Subsection (f) of section 221 of 

19 the Internal Revenue Code of 1986 is amended to read 

20 as follows: 

21 ‘‘(f) ADJUSTMENTS FOR INFLATION.— 

22 ‘‘(1) IN GENERAL.—In the case of a taxable 

23 year beginning after 2002, each of the dollar 

24 amounts in subsection (b) shall be increased by an 

25 amount equal to— 


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1 ‘‘(A) in the case of the $2,500 amount in 

2 subsection (b)(1) and the $15,000 and $30,000 

3 amounts in subsection (b)(2)(B)(ii)— 

4 ‘‘(i) such dollar amount, multiplied by 

5 ‘‘(ii) the cost-of-living adjustment de6 termined under section 1(f)(3) for the cal7 endar year in which the taxable year be8 gins, determined by substituting ‘2020’ for 

9 ‘2016’ in subparagraph (A)(ii) thereof, and 

10 ‘‘(B) in the case of the $50,000 and 

11 $100,000 amounts in subsection 

12 (b)(2)(B)(i)(II)— 

13 ‘‘(i) such dollar amount, multiplied by 

14 ‘‘(ii) the cost-of-living adjustment de15 termined under section 1(f)(3) for the cal16 endar year in which the taxable year be17 gins, determined by substituting ‘2001’ for 

18 ‘2016’ in subparagraph (A)(ii) thereof. 

19 ‘‘(2) ROUNDING.—If any increase under para20 graph (1)— 

21 ‘‘(A) is not a multiple of $100, in the case 

22 of the amount in subsection (b)(1), such in23 crease shall be rounded to the next lowest mul24 tiple of $100, or 


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1 ‘‘(B) is not a multiple of $1,000, in the 

2 case of the amounts in subsection (b)(2)(B)(ii) 

3 and (b)(2)(B)(i)(II), such increase shall be 

4 rounded to the next lowest multiple of $1,000.’’. 

5 (b) EFFECTIVE DATE.—The amendment made by 

6 this section shall apply to taxable years beginning after 

7 December 31, 2021. 

8 SEC. 6. DETERMINATION OF STANDARD MILEAGE RATE 

9 FOR CHARITABLE CONTRIBUTIONS DEDUC10 TION. 

11 (a) IN GENERAL.—Subsection (i) of section 170 of 

12 the Internal Revenue Code of 1986 is amended to read 

13 as follows: 

14 ‘‘(i) STANDARD MILEAGE RATE FOR USE OF PAS15 SENGER AUTOMOBILE.—For purposes of computing the 

16 deduction under this section for use of a passenger auto17 mobile, the standard mileage rate shall be the rate deter18 mined by the Secretary, which rate shall not be less than 

19 the standard mileage rate used for purposes of section 

20 213.’’. 

21 (b) EFFECTIVE DATE.—The amendment made by 

22 this section shall apply to miles traveled after the date 

23 of the enactment of this Act. 


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1 SEC. 7. EXTENSION OF LIMITATION ON DEDUCTION OF 

2 STATE AND LOCAL TAXES. 

3 Paragraph (6) of section 164(b) of the Internal Rev4 enue Code of 1986 is amended— 

5 (1) by striking ‘‘2025’’ in the heading and in6 serting ‘‘2026’’, and 

7 (2) by striking ‘‘January 1, 2026’’ and insert8 ing ‘‘January 1, 2027’’. 

Æ 


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