I 

108TH CONGRESS 

1ST SESSION H. R. 181

To amend the Internal Revenue Code of 1986 to allow all taxpayers who 

maintain households with dependents a credit for dependents. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 7, 2003

Mr. RYUN of Kansas 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 all 

taxpayers who maintain households with dependents a 

credit for dependents.

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 Care Tax Cred5 it Act’’.

6 SEC. 2. HOUSEHOLDS WITH DEPENDENTS. 

7 (a) ALLOWANCE OF CREDIT.—Paragraph (1) of sec8 tion 21(a) of the Internal Revenue Code of 1986 (relating 

9 to allowance of credit for expenses for household and de10 pendent care services necessary for gainful employment) 
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1 is amended by striking ‘‘employment-related expenses (as 

2 defined in subsection (b)(2)) paid by such individual dur3 ing the taxable year’’ and inserting ‘‘allowable amount’’. 

4 (b) APPLICABLE PERCENTAGE DEFINED.—Para5 graph (2) of section 21(a) of such Code (relating to appli6 cable percentage defined) is amended—

7 (1) by striking ‘‘35 percent reduced (but not 

8 below 20 percent)’’ and inserting ‘‘50 percent re9 duced’’, and 

10 (2) by striking ‘‘$15,000’’ and inserting 

11 ‘‘$30,000’’. 

12 (c) DOLLAR LIMIT.—Subsection (c) of section 21 of 

13 such Code is amended to read as follows: 

14 ‘‘(c) ALLOWABLE AMOUNT.—

15 ‘‘(1) IN GENERAL.—The allowable amount 

16 which may be taken into account under subsection 

17 (a) is the sum of—

18 ‘‘(A) $250 times the number of months in 

19 the taxable year of the taxpayer during which 

20 there is not 1 day on which the taxpayer is 

21 gainfully employed, plus 

22 ‘‘(B) the employment-related expenses paid 

23 by the taxpayer during the taxable year. 

24 ‘‘(2) LIMITATION.—The amount determined 

25 under paragraph (1) shall not exceed—
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1 ‘‘(A) $3,000 if there is 1 qualifying indi2 vidual with respect to the taxpayer for such tax3 able year, or 

4 ‘‘(B) $6,000 if there are 2 or more quali5 fying individuals with respect to the taxpayer 

6 for such taxable year. 

7 ‘‘(3) REDUCTION FOR EMPLOYER-PROVIDED

8 DEPENDENT CARE ASSISTANCE.—The amount deter9 mined under paragraph (1) (after the application of 

10 paragraph (2)) shall be reduced by the aggregate 

11 amount excludable from gross income under section 

12 129 for the taxable year.’’. 

13 (d) CONFORMING AMENDMENTS.—

14 (1) The heading for section 21 of such Code is 

15 amended to read as follows: 

16 ‘‘SEC. 21. HOUSEHOLDS WITH DEPENDENTS.’’

17 (2) Paragraph (2) of section 21(d) of such Code 

18 is amended—

19 (A) in subparagraph (A) by striking ‘‘sub20 section (c)(1)’’ and inserting ‘‘subsection 

21 (c)(2)(A)’’, and 

22 (B) in subparagraph (B) by striking ‘‘sub23 section (c)(2)’’ and inserting ‘‘subsection 

24 (c)(2)(B)’’. 
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1 (3) Subparagraph (H) of section 6213(g)(2) of 

2 such Code is amended by striking ‘‘expenses for 

3 household and dependent care services necessary for 

4 gainful employment’’ and inserting ‘‘households with 

5 dependents’’. 

6 (e) CLERICAL AMENDMENT.—The item relating to 

7 section 21 in the table of sections for subpart A of part 

8 IV of subchapter A of chapter 1 of such Code is amended 

9 to read as follows:

‘‘Sec. 21. Households with dependents.’’

10 (f) EFFECTIVE DATE.—The amendments made by 

11 this section shall apply to taxable years beginning after 

12 December 31, 2002.

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