I 

116TH CONGRESS 

1ST SESSION H. R. 3300 

To amend the Internal Revenue Code of 1986 to provide tax relief for 

workers and families, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 18, 2019 

Mr. NEAL 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 provide 

tax relief for workers and families, and for other purposes. 

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; ETC. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Economic Mobility Act of 2019’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 

Sec. 1. Short title; etc. 

TITLE I—EARNED INCOME TAX CREDIT 

Sec. 101. Strengthening the earned income tax credit for individuals with no 

qualifying children. 


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Sec. 102. Taxpayer eligible for childless earned income credit in case of qualifying children who fail to meet certain identification requirements. 

Sec. 103. Credit allowed in case of certain separated spouses. 

Sec. 104. Elimination of disqualified investment income test. 

Sec. 105. Application of earned income tax credit in possessions of the United 

States. 

TITLE II—CHILD TAX CREDIT 

Sec. 201. Child tax credit fully refundable for 2019 and 2020. 

Sec. 202. Payments to possessions. 

TITLE III—DEPENDENT CARE ASSISTANCE 

Sec. 301. Refundability and enhancement of child and dependent care tax credit. 

Sec. 302. Increase in exclusion for employer-provided dependent care assistance. 

TITLE IV—CERTAIN FRINGE BENEFIT EXPENSES 

Sec. 401. Repeal of inclusion of certain fringe benefit expenses in unrelated 

business taxable income. 

1 (c) AMENDMENT OF 1986 CODE.—Except as other2 wise expressly provided, whenever in this Act an amend3 ment or repeal is expressed in terms of an amendment 

4 to, or repeal of, a section or other provision, the reference 

5 shall be considered to be made to a section or other provi6 sion of the Internal Revenue Code of 1986. 

7 TITLE I—EARNED INCOME TAX 

8 CREDIT 

9 SEC. 101. STRENGTHENING THE EARNED INCOME TAX 

10 CREDIT FOR INDIVIDUALS WITH NO QUALI11 FYING CHILDREN. 

12 (a) SPECIAL RULES FOR 2019 AND 2020.—Section 

13 32 is amended by adding at the end the following new 

14 subsection: 


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1 ‘‘(n) SPECIAL RULES FOR INDIVIDUALS WITHOUT

2 QUALIFYING CHILDREN.—In the case of any taxable year 

3 beginning in 2019 or 2020— 

4 ‘‘(1) CREDIT ALLOWED FOR CERTAIN INDIVID5 UALS OVER AGE 18.— 

6 ‘‘(A) IN GENERAL.—Except in the case of 

7 a full-time student (or, in the case of a married 

8 individual, except if both the individual and the 

9 individual’s spouse are full-time students), sub10 section (c)(1)(A)(ii)(II) shall be applied by sub11 stituting ‘age 19’ for ‘age 25’. 

12 ‘‘(B) FULL-TIME STUDENT.—For purposes 

13 of this paragraph, the term ‘full-time student’ 

14 means, with respect to a taxable year, an indi15 vidual who is an eligible student (as defined in 

16 section 25A(b)(3)) during at least 5 calendar 

17 months during the taxable year. 

18 ‘‘(2) INCREASE IN MAXIMUM AGE FOR CRED19 IT.—Subsection (c)(1)(A)(ii)(II) shall be applied by 

20 substituting ‘age 66’ for ‘age 65’. 

21 ‘‘(3) INCREASE IN CREDIT AND PHASEOUT PER22 CENTAGES.—The table contained in subsection 

23 (b)(1) shall be applied by substituting ‘15.3’ for 

24 ‘7.65’ each place it appears therein. 


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1 ‘‘(4) INCREASE IN EARNED INCOME AND

2 PHASEOUT AMOUNTS.— 

3 ‘‘(A) IN GENERAL.—The table contained in 

4 subsection (b)(2)(A) shall be applied— 

5 ‘‘(i) by substituting ‘$9,570’ for 

6 ‘$4,220’, and 

7 ‘‘(ii) by substituting ‘$11,310’ for 

8 ‘$5,280’. 

9 ‘‘(B) COORDINATION WITH INFLATION AD10 JUSTMENT.— 

11 ‘‘(i) IN GENERAL.—In the case of any 

12 taxable year beginning after 2019, the 

13 $9,570 and $11,310 amounts in subpara14 graph (A) shall each be increased by an 

15 amount equal to— 

16 ‘‘(I) such dollar amount, multi17 plied by 

18 ‘‘(II) the cost-of-living adjust19 ment determined under section 1(f)(3) 

20 for the calendar year in which the tax21 able year begins, determined by sub22 stituting ‘2018’ for ‘2016’ in subpara23 graph (A)(ii) thereof. 

24 ‘‘(ii) ROUNDING.—If any increase 

25 under clause (i) is not a multiple of $10, 


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1 such increase shall be rounded to the near2 est multiple of $10. 

3 ‘‘(iii) COORDINATION WITH OTHER IN4 FLATION ADJUSTMENT.—Subsection (j) 

5 shall not apply to any dollar amount speci6 fied in this paragraph.’’. 

7 (b) INFORMATION RETURN MATCHING.—As soon as 

8 practicable, the Secretary of the Treasury (or the Sec9 retary’s delegate) shall develop and implement procedures 

10 for checking an individual’s claim for a credit under sec11 tion 32 of the Internal Revenue Code of 1986, by reason 

12 of subsection (n)(1) thereof, against any information re13 turn made with respect to such individual under section 

14 6050S (relating to returns relating to higher education 

15 tuition and related expenses). 

16 (c) EFFECTIVE DATE.—The amendment made by 

17 this section shall apply to taxable years beginning after 

18 December 31, 2018. 

19 SEC. 102. TAXPAYER ELIGIBLE FOR CHILDLESS EARNED IN20 COME CREDIT IN CASE OF QUALIFYING CHIL21 DREN WHO FAIL TO MEET CERTAIN IDENTI22 FICATION REQUIREMENTS. 

23 (a) IN GENERAL.—Section 32(c)(1) is amended by 

24 striking subparagraph (F). 


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

2 this section shall apply to taxable years beginning after 

3 the date of the enactment of this Act. 

4 SEC. 103. CREDIT ALLOWED IN CASE OF CERTAIN SEPA5 RATED SPOUSES. 

6 (a) IN GENERAL.—Section 32(d) is amended— 

7 (1) by striking ‘‘MARRIED INDIVIDUALS.—In 

8 the case of’’ and inserting the following: ‘‘MARRIED

9 INDIVIDUALS.— 

10 ‘‘(1) IN GENERAL.—In the case of’’; and 

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

12 paragraph: 

13 ‘‘(2) DETERMINATION OF MARITAL STATUS.— 

14 For purposes of this section— 

15 ‘‘(A) IN GENERAL.—Except as provided in 

16 subparagraph (B), marital status shall be deter17 mined under section 7703(a). 

18 ‘‘(B) SPECIAL RULE FOR SEPARATED

19 SPOUSE.—An individual shall not be treated as 

20 married if such individual— 

21 ‘‘(i) is married (as determined under 

22 section 7703(a)) and does not file a joint 

23 return for the taxable year, 


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1 ‘‘(ii) lives with a qualifying child of 

2 the individual for more than one-half of 

3 such taxable year, and 

4 ‘‘(iii)(I) during the last 6 months of 

5 such taxable year, does not have the same 

6 principal place of abode as the individual’s 

7 spouse, or 

8 ‘‘(II) has a decree, instrument, or 

9 agreement (other than a decree of divorce) 

10 described in section 121(d)(3)(C) with re11 spect to the individual’s spouse and is not 

12 a member of the same household with the 

13 individual’s spouse by the end of the tax14 able year.’’. 

15 (b) CONFORMING AMENDMENTS.— 

16 (1) Section 32(c)(1)(A) of such Code is amend17 ed by striking the last sentence. 

18 (2) Section 32(c)(1)(E)(ii) of such Code is 

19 amended by striking ‘‘(within the meaning of section 

20 7703)’’. 

21 (3) Section 32(d)(1) of such Code, as amended 

22 by subsection (a), is amended by striking ‘‘(within 

23 the meaning of section 7703)’’. 


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

2 this section shall apply to taxable years beginning after 

3 the date of the enactment of this Act. 

4 SEC. 104. ELIMINATION OF DISQUALIFIED INVESTMENT IN5 COME TEST. 

6 (a) IN GENERAL.—Section 32 of the Internal Rev7 enue Code of 1986 is amended by striking subsection (i). 

8 (b) CONFORMING AMENDMENTS.— 

9 (1) Section 32(j)(1) of such Code is amended 

10 by striking ‘‘subsection (b)(2) and (i)(1)’’ and in11 serting ‘‘subsection (b)(2)’’. 

12 (2) Section 32(j)(1)(B)(i) of such Code is 

13 amended by striking ‘‘subsections (b)(2)(A) and 

14 (i)(1)’’ and inserting ‘‘subsection (b)(2)(A)’’. 

15 (3) Section 32(j)(2) of such Code is amended— 

16 (A) by striking subparagraph (B); and 

17 (B) by striking ‘‘ROUNDING.—’’ and all 

18 that follows through ‘‘If any dollar amount’’ 

19 and inserting the following: ‘‘ROUNDING.—If 

20 any dollar amount’’. 

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

22 this section shall apply to taxable years beginning after 

23 the date of the enactment of this Act. 


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1 SEC. 105. APPLICATION OF EARNED INCOME TAX CREDIT 

2 IN POSSESSIONS OF THE UNITED STATES. 

3 (a) IN GENERAL.—Chapter 77 of the Internal Rev4 enue Code of 1986 is amended by adding at the end the 

5 following new section: 

6 ‘‘SEC. 7529. APPLICATION OF EARNED INCOME TAX CREDIT 

7 TO POSSESSIONS OF THE UNITED STATES. 

8 ‘‘(a) PUERTO RICO.— 

9 ‘‘(1) IN GENERAL.—With respect to calendar 

10 year 2020 and each calendar year thereafter, the 

11 Secretary shall, except as otherwise provided in this 

12 subsection, make payments to Puerto Rico equal 

13 to— 

14 ‘‘(A) the specified matching amount for 

15 such calendar year, plus 

16 ‘‘(B) in the case of calendar years 2020 

17 through 2024, the lesser of— 

18 ‘‘(i) the expenditures made by Puerto 

19 Rico during such calendar year for edu20 cation efforts with respect to individual 

21 taxpayers and tax return preparers relat22 ing to the earned income tax credit, or 

23 ‘‘(ii) $1,000,000. 

24 ‘‘(2) REQUIREMENT TO REFORM EARNED IN25 COME TAX CREDIT.—The Secretary shall not make 

26 any payments under paragraph (1) with respect to 


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1 any calendar year unless Puerto Rico has in effect 

2 an earned income tax credit for taxable years begin3 ning in or with such calendar year which (relative to 

4 the earned income tax credit which was in effect for 

5 taxable years beginning in or with calendar year 

6 2019) increases the percentage of earned income 

7 which is allowed as a credit for each group of indi8 viduals with respect to which such percentage is sep9 arately stated or determined in a manner designed 

10 to substantially increase workforce participation. 

11 ‘‘(3) SPECIFIED MATCHING AMOUNT.—For pur12 poses of this subsection— 

13 ‘‘(A) IN GENERAL.—The term ‘specified 

14 matching amount’ means, with respect to any 

15 calendar year, the lesser of— 

16 ‘‘(i) the excess (if any) of— 

17 ‘‘(I) the cost to Puerto Rico of 

18 the earned income tax credit for tax19 able years beginning in or with such 

20 calendar year, over 

21 ‘‘(II) the base amount for such 

22 calendar year, or 

23 ‘‘(ii) the product of 3, multiplied by 

24 the base amount for such calendar year. 

25 ‘‘(B) BASE AMOUNT.— 


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1 ‘‘(i) BASE AMOUNT FOR 2020.—In the 

2 case of calendar year 2020, the term ‘base 

3 amount’ means the greater of— 

4 ‘‘(I) the cost to Puerto Rico of 

5 the earned income tax credit for tax6 able years beginning in or with cal7 endar year 2019 (rounded to the 

8 nearest multiple of $1,000,000), or 

9 ‘‘(II) $200,000,000. 

10 ‘‘(ii) INFLATION ADJUSTMENT.—In 

11 the case of any calendar year after 2020, 

12 the term ‘base amount’ means the dollar 

13 amount determined under clause (i) in14 creased by an amount equal to— 

15 ‘‘(I) such dollar amount, multi16 plied by— 

17 ‘‘(II) the cost-of-living adjust18 ment determined under section 1(f)(3) 

19 for such calendar year, determined by 

20 substituting ‘calendar year 2019’ for 

21 ‘calendar year 2016’ in subparagraph 

22 (A)(ii) thereof. 

23 Any amount determined under this clause 

24 shall be rounded to the nearest multiple of 

25 $1,000,000. 


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1 ‘‘(4) RULES RELATED TO PAYMENTS AND RE2 PORTS.— 

3 ‘‘(A) TIMING OF PAYMENTS.—The Sec4 retary shall make payments under paragraph 

5 (1) for any calendar year— 

6 ‘‘(i) after receipt of the report de7 scribed in subparagraph (B) for such cal8 endar year, and 

9 ‘‘(ii) except as provided in clause (i), 

10 within a reasonable period of time before 

11 the due date for individual income tax re12 turns (as determined under the laws of 

13 Puerto Rico) for taxable years which began 

14 on the first day of such calendar year. 

15 ‘‘(B) ANNUAL REPORTS.—With respect to 

16 calendar year 2020 and each calendar year 

17 thereafter, Puerto Rico shall provide to the Sec18 retary a report which shall include— 

19 ‘‘(i) an estimate of the costs described 

20 in paragraphs (1)(B)(i) and (3)(A)(i)(I) 

21 with respect to such calendar year, and 

22 ‘‘(ii) a statement of such costs with 

23 respect to the preceding calendar year. 

24 ‘‘(C) ADJUSTMENTS.— 


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1 ‘‘(i) IN GENERAL.—In the event that 

2 any estimate of an amount is more or less 

3 than the actual amount as later deter4 mined and any payment under paragraph 

5 (1) was determined on the basis of such 

6 estimate, proper payment shall be made 

7 by, or to, the Secretary (as the case may 

8 be) as soon as practicable after the deter9 mination that such estimate was inac10 curate. Proper adjustment shall be made in 

11 the amount of any subsequent payments 

12 made under paragraph (1) to the extent 

13 that proper payment is not made under the 

14 preceding sentence before such subsequent 

15 payments. 

16 ‘‘(ii) ADDITIONAL REPORTS.—The 

17 Secretary may require such additional peri18 odic reports of the information described in 

19 subparagraph (B) as the Secretary deter20 mines appropriate to facilitate timely ad21 justments under clause (i). 

22 ‘‘(D) DETERMINATION OF COST OF

23 EARNED INCOME TAX CREDIT.—For purposes 

24 of this subsection, the cost to Puerto Rico of 

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1 mined by the Secretary on the basis of the laws 

2 of Puerto Rico and shall include reductions in 

3 revenues received by Puerto Rico by reason of 

4 such credit and refunds attributable to such 

5 credit, but shall not include any administrative 

6 costs with respect to such credit. 

7 ‘‘(E) PREVENTION OF MANIPULATION OF

8 BASE AMOUNT.—No payments shall be made 

9 under paragraph (1) if the earned income tax 

10 credit as in effect in Puerto Rico for taxable 

11 years beginning in or with calendar year 2019 

12 is modified after the date of the enactment of 

13 this subsection. 

14 ‘‘(b) POSSESSIONS WITH MIRROR CODE TAX SYS15 TEMS.— 

16 ‘‘(1) IN GENERAL.—With respect to calendar 

17 year 2020 and each calendar year thereafter, the 

18 Secretary shall, except as otherwise provided in this 

19 subsection, make payments to the Virgin Islands, 

20 Guam, and the Commonwealth of the Northern Mar21 iana Islands equal to— 

22 ‘‘(A) 75 percent of the cost to such posses23 sion of the earned income tax credit for taxable 

24 years beginning in or with such calendar year, 

25 plus 


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1 ‘‘(B) in the case of calendar years 2020 

2 through 2024, the lesser of— 

3 ‘‘(i) the expenditures made by such 

4 possession during such calendar year for 

5 education efforts with respect to individual 

6 taxpayers and tax return preparers relat7 ing to such earned income tax credit, or 

8 ‘‘(ii) $50,000. 

9 ‘‘(2) APPLICATION OF CERTAIN RULES.—Rules 

10 similar to the rules of subparagraphs (A), (B), (C), 

11 and (D) of subsection (a)(4) shall apply for purposes 

12 of this subsection. 

13 ‘‘(c) AMERICAN SAMOA.— 

14 ‘‘(1) IN GENERAL.—With respect to calendar 

15 year 2020 and each calendar year thereafter, the 

16 Secretary shall, except as otherwise provided in this 

17 subsection, make payments to American Samoa 

18 equal to— 

19 ‘‘(A) the lesser of— 

20 ‘‘(i) 75 percent of the cost to Amer21 ican Samoa of the earned income tax cred22 it for taxable years beginning in or with 

23 such calendar year, or 

24 ‘‘(ii) $12,000,000, plus 


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1 ‘‘(B) in the case of calendar years 2020 

2 through 2024, the lesser of— 

3 ‘‘(i) the expenditures made by Amer4 ican Samoa during such calendar year for 

5 education efforts with respect to individual 

6 taxpayers and tax return preparers relat7 ing to such earned income tax credit, or 

8 ‘‘(ii) $50,000. 

9 ‘‘(2) REQUIREMENT TO ENACT AND MAINTAIN

10 AN EARNED INCOME TAX CREDIT.—The Secretary 

11 shall not make any payments under paragraph (1) 

12 with respect to any calendar year unless American 

13 Samoa has in effect an earned income tax credit for 

14 taxable years beginning in or with such calendar 

15 year which allows a refundable tax credit to individ16 uals on the basis of the taxpayer’s earned income 

17 which is designed to substantially increase workforce 

18 participation. 

19 ‘‘(3) INFLATION ADJUSTMENT.—In the case of 

20 any calendar year after 2020, the $12,000,000 

21 amount in paragraph (1)(A)(ii) shall be increased by 

22 an amount equal to— 

23 ‘‘(A) such dollar amount, multiplied by— 

24 ‘‘(B) the cost-of-living adjustment deter25 mined under section 1(f)(3) for such calendar 


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1 year, determined by substituting ‘calendar year 

2 2019’ for ‘calendar year 2016’ in subparagraph 

3 (A)(ii) thereof. 

4 Any increase determined under this clause shall be 

5 rounded to the nearest multiple of $100,000. 

6 ‘‘(4) APPLICATION OF CERTAIN RULES.—Rules 

7 similar to the rules of subparagraphs (A), (B), (C), 

8 and (D) of subsection (a)(4) shall apply for purposes 

9 of this subsection. 

10 ‘‘(d) TREATMENT OF PAYMENTS.—For purposes of 

11 section 1324 of title 31, United States Code, the payments 

12 under this section shall be treated in the same manner 

13 as a refund due from a credit provision referred to in sub14 section (b)(2) of such section.’’. 

15 (b) CLERICAL AMENDMENT.—The table of sections 

16 for chapter 77 of such Code is amended by adding at the 

17 end the following new item: 

‘‘Sec. 7529. Application of earned income tax credit to possessions of the 

United States.’’. 

18 TITLE II—CHILD TAX CREDIT 

19 SEC. 201. CHILD TAX CREDIT FULLY REFUNDABLE FOR 2019 

20 AND 2020. 

21 (a) IN GENERAL.—Section 24(h) is amended by add22 ing at the end the following new paragraph: 

23 ‘‘(8) CREDIT FULLY REFUNDABLE FOR 2019

24 AND 2020.—In the case of an individual other than 


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1 a nonresident alien, for any taxable year beginning 

2 in 2019 or 2020— 

3 ‘‘(A) paragraph (5) of this subsection shall 

4 not apply, and 

5 ‘‘(B) the increase determined under the 

6 first sentence of subsection (d)(1) shall be the 

7 amount determined under subparagraph (A) of 

8 such subsection (determined without regard to 

9 paragraph (4) of this subsection).’’. 

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

11 this section shall apply to taxable years beginning after 

12 December 31, 2018. 

13 SEC. 202. PAYMENTS TO POSSESSIONS. 

14 (a) MIRROR CODE POSSESSION.—The Secretary of 

15 the Treasury shall pay to each possession of the United 

16 States with a mirror code tax system amounts equal to 

17 the loss to that possession by reason of the application 

18 of section 24 of the Internal Revenue Code of 1986 with 

19 respect to taxable years beginning after 2018. Such 

20 amounts shall be determined by the Secretary of the 

21 Treasury based on information provided by the govern22 ment of the respective possession. 

23 (b) OTHER POSSESSIONS.—The Secretary of the 

24 Treasury shall pay to each possession of the United States 

25 which does not have a mirror code tax system amounts 


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1 estimated by the Secretary of the Treasury as being equal 

2 to the aggregate benefits that would have been provided 

3 to residents of such possession by reason of the application 

4 of section 24 of such Code for taxable years beginning 

5 after 2018 if the provisions of such section had been in 

6 effect in such possession. The preceding sentence shall not 

7 apply with respect to any possession of the United States 

8 unless such possession has a plan, which has been ap9 proved by the Secretary of the Treasury, under which such 

10 possession will promptly distribute such payments to the 

11 residents of such possession in a manner which replicates 

12 to the greatest degree practicable the benefits that would 

13 have been so provided to each such resident. 

14 (c) COORDINATION WITH CREDIT ALLOWED

15 AGAINST UNITED STATES INCOME TAXES.— 

16 (1) IN GENERAL.—No credit shall be allowed 

17 against United States income taxes for any taxable 

18 year under section 24 of the Internal Revenue Code 

19 of 1986 to any person— 

20 (A) to whom a credit is allowed against 

21 taxes imposed by a possession with a mirror 

22 code tax system by reason of the application of 

23 section 24 of such Code in such possession for 

24 such taxable year; or 


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1 (B) who is eligible for a payment under a 

2 plan described in subsection (b) with respect to 

3 such taxable year. 

4 (2) RESTRICTION ON REFUNDABLE CREDIT.— 

5 In the case of any person to whom a credit would 

6 be allowed against taxes imposed by a possession 

7 which does not have a mirror code tax system if the 

8 provisions of such section 24 had been in effect in 

9 such possession for the taxable year (and who is not 

10 described in paragraph (1)(B)), section 24(h)(8) of 

11 such Code (as added by this Act) shall not apply to 

12 such person for such taxable year. 

13 (d) DEFINITIONS AND SPECIAL RULES.— 

14 (1) POSSESSION OF THE UNITED STATES.—For 

15 purposes of this section, the term ‘‘possession of the 

16 United States’’ includes the Commonwealth of Puer17 to Rico and the Commonwealth of the Northern 

18 Mariana Islands. 

19 (2) MIRROR CODE TAX SYSTEM.—For purposes 

20 of this section, the term ‘‘mirror code tax system’’ 

21 means, with respect to any possession of the United 

22 States, the income tax system of such possession if 

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1 erence to the income tax laws of the United States 

2 as if such possession were the United States. 

3 (3) TREATMENT OF PAYMENTS.—For purposes 

4 of section 1324(b)(2) of title 31, United States 

5 Code, the payments under this section shall be treat6 ed in the same manner as a refund due from the 

7 credit allowed under section 24 of the Internal Rev8 enue Code of 1986. 

9 TITLE III—DEPENDENT CARE 

10 ASSISTANCE 

11 SEC. 301. REFUNDABILITY AND ENHANCEMENT OF CHILD 

12 AND DEPENDENT CARE TAX CREDIT. 

13 (a) IN GENERAL.—Section 21 is amended by adding 

14 at the end the following new subsection: 

15 ‘‘(g) SPECIAL RULES FOR 2019 AND 2020.—In the 

16 case of any taxable year beginning in 2019 or 2020— 

17 ‘‘(1) CREDIT MADE REFUNDABLE.—In the case 

18 of an individual other than a nonresident alien, the 

19 credit allowed under subsection (a) shall be treated 

20 as a credit allowed under subpart C (and not allowed 

21 under this subpart). 

22 ‘‘(2) INCREASE IN APPLICABLE PERCENTAGE.— 

23 Subsection (a)(2) shall be applied— 

24 ‘‘(A) by substituting ‘50 percent’ for ‘35 

25 percent’, and 


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1 ‘‘(B) by substituting ‘$120,000’ for 

2 ‘$15,000’. 

3 ‘‘(3) INCREASE IN DOLLAR LIMIT ON AMOUNT

4 CREDITABLE.—Subsection (c) shall be applied— 

5 ‘‘(A) by substituting ‘$6,000’ for ‘$3,000’ 

6 in paragraph (1) thereof, and 

7 ‘‘(B) by substituting ‘twice the amount in 

8 effect under paragraph (1)’ for ‘$6,000’ in 

9 paragraph (2) thereof. 

10 ‘‘(4) INFLATION ADJUSTMENT OF DOLLAR

11 AMOUNTS.—In the case of any taxable year begin12 ning after 2019, the $120,000 amount in paragraph 

13 (2)(B) and the $6,000 amount in paragraph (3)(A) 

14 shall each be increased by an amount equal to— 

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

16 ‘‘(B) the cost-of-living adjustment deter17 mined under section 1(f)(3) for the calendar 

18 year in which the taxable year begins, deter19 mined by substituting ‘2018’ for ‘2016’ in sub20 paragraph (A)(ii) thereof. 

21 If any increase determined under this paragraph is 

22 not a multiple of $100, such increase shall be round23 ed to the next lowest multiple of $100.’’. 


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1 (b) CONFORMING AMENDMENT.—Section 1324(b)(2) 

2 of title 31, United States Code, is amended by inserting 

3 ‘‘21 (by reason of subsection (g) thereof),’’ before ‘‘25A’’. 

4 (c) COORDINATION WITH POSSESSION TAX SYS5 TEMS.—Section 21(g)(1) of the Internal Revenue Code of 

6 1986 (as added by this section) shall not apply to any per7 son— 

8 (1) to whom a credit is allowed against taxes 

9 imposed by a possession with a mirror code tax sys10 tem by reason of the application of section 21 of 

11 such Code in such possession for such taxable year; 

12 or 

13 (2) to whom a credit would be allowed against 

14 taxes imposed by a possession which does not have 

15 a mirror code tax system if the provisions of section 

16 21 of such Code had been in effect in such posses17 sion for such taxable year. 

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

19 this section shall apply to taxable years beginning after 

20 December 31, 2018. 

21 SEC. 302. INCREASE IN EXCLUSION FOR EMPLOYER-PRO22 VIDED DEPENDENT CARE ASSISTANCE. 

23 (a) IN GENERAL.—Section 129(a)(2) is amended by 

24 adding at the end the following new subparagraph: 


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1 ‘‘(D) SPECIAL RULE FOR 2020 AND 2021.— 

2 In the case of any taxable year beginning in 

3 2020 or 2021— 

4 ‘‘(i) IN GENERAL.—Subparagraph (A) 

5 shall be applied be substituting ‘$10,500 

6 (half such dollar amount’ for ‘$5,000 

7 ($2,500’. 

8 ‘‘(ii) INFLATION ADJUSTMENT.—In 

9 the case of any taxable year beginning 

10 after 2020, the $10,500 amount in clause 

11 (i) shall be increased by an amount equal 

12 to— 

13 ‘‘(I) such dollar amount, multi14 plied by 

15 ‘‘(II) the cost-of-living adjust16 ment determined under section 1(f)(3) 

17 for the calendar year in which the tax18 able year begins, determined by sub19 stituting ‘2019’ for ‘2016’ in subpara20 graph (A)(ii) thereof. 

21 Any increase determined under the pre22 ceding sentence which is not a multiple of 

23 $50, shall be rounded to the nearest mul24 tiple of $50.’’. 


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•HR 3300 IH

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

2 this section shall apply to taxable years beginning after 

3 December 31, 2019. 

4 TITLE IV—CERTAIN FRINGE 

5 BENEFIT EXPENSES 

6 SEC. 401. REPEAL OF INCLUSION OF CERTAIN FRINGE BEN7 EFIT EXPENSES IN UNRELATED BUSINESS 

8 TAXABLE INCOME. 

9 (a) IN GENERAL.—Section 512(a) is amended by 

10 striking paragraph (7). 

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

12 this subsection shall take effect as if included in the 

13 amendments made by section 13703 of Public Law 115– 

14 97. 

Æ 


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