I 

115TH CONGRESS 

1ST SESSION H. R. 2238 

To amend the Internal Revenue Code of 1986 to enhance the Child and 

Dependent Care Tax Credit and make the credit fully refundable. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 28, 2017 

Mrs. DEMINGS 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 enhance 

the Child and Dependent Care Tax Credit and make 

the credit fully refundable. 

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 and Dependent 

5 Care Tax Credit Improvement Act of 2017’’. 

6 SEC. 2. ENHANCEMENT OF CHILD AND DEPENDENT CARE 

7 TAX CREDIT. 

8 (a) IN GENERAL.—Paragraph (2) of section 21(a) of 

9 the Internal Revenue Code of 1986 is amended to read 

10 as follows: 


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1 ‘‘(2) APPLICABLE PERCENTAGE.—For purposes 

2 of paragraph (1), the term ‘applicable percentage’ 

3 means 50 percent reduced (but not below 20 per4 cent) by 1 percentage point for each $2,000 (or frac5 tion thereof) by which the taxpayer’s adjusted gross 

6 income for the taxable year exceeds $126,000.’’. 

7 (b) INCREASE IN DOLLAR LIMIT ON AMOUNT CRED8 ITABLE.—Subsection (c) of section 21 of such Code is 

9 amended— 

10 (1) in paragraph (1), by striking ‘‘$3,000’’ and 

11 inserting ‘‘$8,000’’; and 

12 (2) in paragraph (2), by striking ‘‘$6,000’’ and 

13 inserting ‘‘$16,000’’. 

14 (c) ADJUSTMENT FOR INFLATION.—Section 21 of 

15 such Code is amended— 

16 (1) by redesignating subsection (f) as sub17 section (g); and 

18 (2) by inserting after subsection (e) the fol19 lowing new subsection: 

20 ‘‘(f) INFLATION ADJUSTMENT.— 

21 ‘‘(1) IN GENERAL.—In the case of a calendar 

22 year beginning after 2018, the $126,000 amount in 

23 paragraph (2) of subsection (a) and the dollar 

24 amounts in subsection (c) shall each be increased by 

25 an amount equal to— 


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

2 ‘‘(B) the cost-of-living adjustment deter3 mined under section 1(f)(3) for the calendar 

4 year in which the taxable year begins, deter5 mined by substituting ‘calendar year 2017’ for 

6 ‘calendar year 1992’ in subparagraph (B) 

7 thereof. 

8 ‘‘(2) ROUNDING.—If any dollar amount, after 

9 being increased under paragraph (1), is not a mul10 tiple of $100, such dollar amount shall be rounded 

11 to the next lowest multiple of $100.’’. 

12 (d) CREDIT TO BE REFUNDABLE.— 

13 (1) IN GENERAL.—The Internal Revenue Code 

14 of 1986 is amended— 

15 (A) by redesignating section 21 as section 

16 36C; and 

17 (B) by moving section 36C, as so redesig18 nated, from subpart A of part IV of subchapter 

19 A of chapter 1 to the location immediately be20 fore section 37 in subpart C of part IV of sub21 chapter A of chapter 1. 

22 (2) TECHNICAL AMENDMENTS.— 

23 (A) Paragraph (1) of section 23(f) of the 

24 Internal Revenue Code of 1986 is amended by 

25 striking ‘‘21(e)’’ and inserting ‘‘36C(e)’’. 


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1 (B) Paragraph (6) of section 35(g) of such 

2 Code is amended by striking ‘‘21(e)’’ and in3 serting ‘‘36C(e)’’. 

4 (C) Paragraph (1) of section 36C(a) of 

5 such Code (as redesignated by paragraph (1)) 

6 is amended by striking ‘‘this chapter’’ and in7 serting ‘‘this subtitle’’. 

8 (D) Subparagraph (C) of section 129(a)(2) 

9 of such Code is amended by striking ‘‘section 

10 21(e)’’ and inserting ‘‘section 36C(e)’’. 

11 (E) Paragraph (2) of section 129(b) of 

12 such Code is amended by striking ‘‘section 

13 21(d)(2)’’ and inserting ‘‘section 36C(d)(2)’’. 

14 (F) Paragraph (1) of section 129(e) of 

15 such Code is amended by striking ‘‘section 

16 21(b)(2)’’ and inserting ‘‘section 36C(b)(2)’’. 

17 (G) Subsection (e) of section 213 of such 

18 Code is amended by striking ‘‘section 21’’ and 

19 inserting ‘‘section 36C’’. 

20 (H) Subparagraph (H) of section 

21 6213(g)(2) of such Code is amended by striking 

22 ‘‘section 21’’ and inserting ‘‘section 36C’’. 

23 (I) Subparagraph (L) of section 

24 6213(g)(2) of such Code is amended by striking 


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1 ‘‘section 21, 24, or 32,’’ and inserting ‘‘section 

2 24, 32, or 36C,’’. 

3 (J) Paragraph (2) of section 1324(b) of 

4 title 31, United States Code, is amended by in5 serting ‘‘36C,’’ after ‘‘36B,’’. 

6 (K) The table of sections for subpart C of 

7 part IV of subchapter A of chapter 1 of the In8 ternal Revenue Code of 1986 is amended by in9 serting after the item relating to section 36B 

10 the following: 

‘‘Sec. 36C. Expenses for household and dependent care services necessary for 

gainful employment.’’. 

11 (L) The table of sections for subpart A of 

12 such part IV is amended by striking the item 

13 relating to section 21. 

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

15 this section shall apply to taxable years beginning after 

16 December 31, 2017. 

Æ 


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