I 

110TH CONGRESS 

1ST SESSION H. R. 1871 

To amend the Internal Revenue Code of 1986 to increase, expand the availability of, and repeal the sunset with respect to, the dependent care 

tax credit. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 17, 2007 

Mrs. GILLIBRAND (for herself, Mrs. BONO, Mr. HIGGINS, Mr. MCNERNEY, 

Mrs. BOYDA of Kansas, Mr. RUPPERSBERGER, Mr. BISHOP of Georgia, 

Mr. BARROW, Mr. PETERSON of Minnesota, Mr. LINCOLN DAVIS of Tennessee, Mr. PATRICK J. MURPHY of Pennsylvania, Mr. ARCURI, Mr. BOSWELL, Mr. SHULER, Mr. ELLSWORTH, Mr. ALTMIRE, Mr. WILSON of 

Ohio, Mr. CARNEY, Mr. MCNULTY, Ms. SHEA-PORTER, Ms. SUTTON, Mr. 

MAHONEY of Florida, Ms. HARMAN, Ms. CASTOR, Mr. WALZ of Minnesota, Ms. CLARKE, Mr. HARE, Mr. ISRAEL, Mr. CROWLEY, Mr. HINCHEY, Mr. DONNELLY, Mr. YARMUTH, Mr. LOEBSACK, Ms. HIRONO, Mr. 

PERLMUTTER, Mr. COURTNEY, and Mr. JOHNSON of Georgia) 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 increase, 

expand the availability of, and repeal the sunset with 

respect to, the dependent care tax credit. 

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


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Family Care Act of 

3 2007’’. 

4 SEC. 2. INCREASE AND INFLATION ADJUSTMENT FOR DE5 PENDENT CARE CREDIT. 

6 (a) IN GENERAL.— 

7 (1) INCREASE.—Paragraph (2) of section 21(a) 

8 of the Internal Revenue Code of 1986 (relating to 

9 expenses for household and dependent care services 

10 necessary for gainful employment) is amended to 

11 read as follows: 

12 ‘‘(2) APPLICABLE PERCENTAGE.—The term 

13 ‘applicable percentage’ means— 

14 ‘‘(A) 40 percent in the case of a taxpayer 

15 whose adjusted gross income is $100,000 or 

16 less, and 

17 ‘‘(B) 20 percent in the case of any other 

18 taxpayer.’’. 

19 (2) INFLATION ADJUSTMENT.—Section 21 of 

20 such Code is amended by redesignating subsection 

21 (f) as subsection (g) and by inserting after sub22 section (e) the following new subsection: 

23 ‘‘(f) COST-OF-LIVING ADJUSTMENT.—In the case of 

24 any taxable year beginning in a calendar year after 2007, 

25 the $100,000 amount contained in subsection (a)(2)(A) 

26 shall be increased by an amount equal to— 


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1 ‘‘(1) such dollar amount, multiplied by 

2 ‘‘(2) the cost-of-living adjustment determined 

3 under section 1(f)(3) for the calendar year in which 

4 the taxable year begins, determined by substituting 

5 ‘calendar year 2006’ for ‘calendar year 1992’ in sub6 paragraph (B) thereof. 

7 Any increase determined under the preceding sentence 

8 shall be rounded to the nearest multiple of $1,000.’’. 

9 (b) EFFECTIVE DATE.—The amendments made by 

10 this section shall apply to taxable years beginning after 

11 December 31, 2006. 

12 SEC. 3. INCREASE IN DEPENDENT CARE CREDIT MADE 

13 PERMANENT. 

14 Section 901 of the Economic Growth and Tax Relief 

15 Reconciliation Act of 2001 shall not apply to the amend16 ments made by section 204 of such Act (relating to de17 pendent care credit). 

Æ 


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