IB 

Union Calendar No. 307 

116TH CONGRESS 

2D SESSION H. R. 3300 

[Report No. 116–384] 

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 

FEBRUARY 4, 2020 

Additional sponsors: Mr. SAN NICOLAS and Mr. NORCROSS

FEBRUARY 4, 2020 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on June 18, 2019] 


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A BILL 

To amend the Internal Revenue Code of 1986 to provide 

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


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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. 

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. 

8 (c) AMENDMENT OF 1986 CODE.—Except as otherwise 

9 expressly provided, whenever in this Act an amendment or 

10 repeal is expressed in terms of an amendment to, or repeal 

11 of, a section or other provision, the reference shall be consid12 ered to be made to a section or other provision of the Inter13 nal Revenue Code of 1986. 


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1 TITLE I—EARNED INCOME TAX 

2 CREDIT 

3 SEC. 101. STRENGTHENING THE EARNED INCOME TAX 

4 CREDIT FOR INDIVIDUALS WITH NO QUALI5 FYING CHILDREN. 

6 (a) SPECIAL RULES FOR 2019 AND 2020.—Section 32 

7 is amended by adding at the end the following new sub8 section: 

9 ‘‘(n) SPECIAL RULES FOR INDIVIDUALS WITHOUT

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

11 beginning in 2019 or 2020— 

12 ‘‘(1) CREDIT ALLOWED FOR CERTAIN INDIVID13 UALS OVER AGE 18.— 

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

15 full-time student (or, in the case of a married in16 dividual, except if both the individual and the 

17 individual’s spouse are full-time students), sub18 section (c)(1)(A)(ii)(II) shall be applied by sub19 stituting ‘age 19’ for ‘age 25’. 

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

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

22 means, with respect to a taxable year, an indi23 vidual who is an eligible student (as defined in 

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

25 months during the taxable year. 


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1 ‘‘(2) INCREASE IN MAXIMUM AGE FOR CREDIT.— 

2 Subsection (c)(1)(A)(ii)(II) shall be applied by sub3 stituting ‘age 66’ for ‘age 65’. 

4 ‘‘(3) INCREASE IN CREDIT AND PHASEOUT PER5 CENTAGES.—The table contained in subsection (b)(1) 

6 shall be applied by substituting ‘15.3’ for ‘7.65’ each 

7 place it appears therein. 

8 ‘‘(4) INCREASE IN EARNED INCOME AND PHASE9 OUT AMOUNTS.— 

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

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

12 ‘‘(i) by substituting ‘$9,570’ for 

13 ‘$4,220’, and 

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

15 ‘$5,280’. 

16 ‘‘(B) COORDINATION WITH INFLATION AD17 JUSTMENT.— 

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

19 taxable year beginning after 2019, the 

20 $9,570 and $11,310 amounts in subpara21 graph (A) shall each be increased by an 

22 amount equal to— 

23 ‘‘(I) such dollar amount, multi24 plied by 


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1 ‘‘(II) the cost-of-living adjustment 

2 determined under section 1(f)(3) for 

3 the calendar year in which the taxable 

4 year begins, determined by substituting 

5 ‘2018’ for ‘2016’ in subparagraph 

6 (A)(ii) thereof. 

7 ‘‘(ii) ROUNDING.—If any increase 

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

9 such increase shall be rounded to the nearest 

10 multiple of $10. 

11 ‘‘(iii) COORDINATION WITH OTHER IN12 FLATION ADJUSTMENT.—Subsection (j) shall 

13 not apply to any dollar amount specified in 

14 this paragraph.’’. 

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

16 practicable, the Secretary of the Treasury (or the Sec17 retary’s delegate) shall develop and implement procedures 

18 for checking an individual’s claim for a credit under section 

19 32 of the Internal Revenue Code of 1986, by reason of sub20 section (n)(1) thereof, against any information return made 

21 with respect to such individual under section 6050S (relat22 ing to returns relating to higher education tuition and re23 lated expenses). 


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1 (c) EFFECTIVE DATE.—The amendment made by this 

2 section shall apply to taxable years beginning after Decem3 ber 31, 2018. 

4 SEC. 102. TAXPAYER ELIGIBLE FOR CHILDLESS EARNED IN5 COME CREDIT IN CASE OF QUALIFYING CHIL6 DREN WHO FAIL TO MEET CERTAIN IDENTI7 FICATION REQUIREMENTS. 

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

9 striking subparagraph (F). 

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

11 section shall apply to taxable years beginning after the date 

12 of the enactment of this Act. 

13 SEC. 103. CREDIT ALLOWED IN CASE OF CERTAIN SEPA14 RATED SPOUSES. 

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

16 (1) by striking ‘‘MARRIED INDIVIDUALS.—In the 

17 case of’’ and inserting the following: ‘‘MARRIED INDI18 VIDUALS.— 

19 ‘‘(1) IN GENERAL.—In the case of’’, and 

20 (2) by adding at the end the following new para21 graph: 

22 ‘‘(2) DETERMINATION OF MARITAL STATUS.—For 

23 purposes of this section— 


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

2 subparagraph (B), marital status shall be deter3 mined under section 7703(a). 

4 ‘‘(B) SPECIAL RULE FOR SEPARATED

5 SPOUSE.—An individual shall not be treated as 

6 married if such individual— 

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

8 section 7703(a)) and does not file a joint re9 turn for the taxable year, 

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

11 the individual for more than one-half of 

12 such taxable year, and 

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

14 such taxable year, does not have the same 

15 principal place of abode as the individual’s 

16 spouse, or 

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

18 agreement (other than a decree of divorce) 

19 described in section 121(d)(3)(C) with re20 spect to the individual’s spouse and is not 

21 a member of the same household with the 

22 individual’s spouse by the end of the taxable 

23 year.’’. 

24 (b) CONFORMING AMENDMENTS.— 


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1 (1) Section 32(c)(1)(A) of such Code is amended 

2 by striking the last sentence. 

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

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

5 7703)’’. 

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

7 subsection (a), is amended by striking ‘‘(within the 

8 meaning of section 7703)’’. 

9 (c) EFFECTIVE DATE.—The amendments made by this 

10 section shall apply to taxable years beginning after the date 

11 of the enactment of this Act. 

12 SEC. 104. ELIMINATION OF DISQUALIFIED INVESTMENT IN13 COME TEST. 

14 (a) IN GENERAL.—Section 32 of the Internal Revenue 

15 Code of 1986 is amended by striking subsection (i). 

16 (b) CONFORMING AMENDMENTS.— 

17 (1) Section 32(j)(1) of such Code is amended by 

18 striking ‘‘subsections (b)(2) and (i)(1)’’ and inserting 

19 ‘‘subsection (b)(2)’’. 

20 (2) Section 32(j)(1)(B)(i) of such Code is amend21 ed by striking ‘‘subsections (b)(2)(A) and (i)(1)’’ and 

22 inserting ‘‘subsection (b)(2)(A)’’. 

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

24 (A) by striking subparagraph (B), and 


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

2 that follows through ‘‘If any dollar amount’’ and 

3 inserting the following: ‘‘ROUNDING.—If any dol4 lar amount’’. 

5 (c) EFFECTIVE DATE.—The amendments made by this 

6 section shall apply to taxable years beginning after the date 

7 of the enactment of this Act. 

8 SEC. 105. APPLICATION OF EARNED INCOME TAX CREDIT IN 

9 POSSESSIONS OF THE UNITED STATES. 

10 (a) IN GENERAL.—Chapter 77 of the Internal Revenue 

11 Code of 1986 is amended by adding at the end the following 

12 new section: 

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

14 TO POSSESSIONS OF THE UNITED STATES. 

15 ‘‘(a) PUERTO RICO.— 

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

17 year 2020 and each calendar year thereafter, the Sec18 retary shall, except as otherwise provided in this sub19 section, make payments to Puerto Rico equal to— 

20 ‘‘(A) the specified matching amount for 

21 such calendar year, plus 

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

23 through 2024, the lesser of— 

24 ‘‘(i) the expenditures made by Puerto 

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1 cation efforts with respect to individual tax2 payers and tax return preparers relating to 

3 the earned income tax credit, or 

4 ‘‘(ii) $1,000,000. 

5 ‘‘(2) REQUIREMENT TO REFORM EARNED INCOME

6 TAX CREDIT.—The Secretary shall not make any pay7 ments under paragraph (1) with respect to any cal8 endar year unless Puerto Rico has in effect an earned 

9 income tax credit for taxable years beginning in or 

10 with such calendar year which (relative to the earned 

11 income tax credit which was in effect for taxable 

12 years beginning in or with calendar year 2019) in13 creases the percentage of earned income which is al14 lowed as a credit for each group of individuals with 

15 respect to which such percentage is separately stated 

16 or determined in a manner designed to substantially 

17 increase workforce participation. 

18 ‘‘(3) SPECIFIED MATCHING AMOUNT.—For pur19 poses of this subsection— 

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

21 matching amount’ means, with respect to any 

22 calendar year, the lesser of— 

23 ‘‘(i) the excess (if any) of— 

24 ‘‘(I) the cost to Puerto Rico of the 

25 earned income tax credit for taxable 


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1 years beginning in or with such cal2 endar year, over 

3 ‘‘(II) the base amount for such 

4 calendar year, or 

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

6 the base amount for such calendar year. 

7 ‘‘(B) BASE AMOUNT.— 

8 ‘‘(i) BASE AMOUNT FOR 2020.—In the 

9 case of calendar year 2020, the term ‘base 

10 amount’ means the greater of— 

11 ‘‘(I) the cost to Puerto Rico of the 

12 earned income tax credit for taxable 

13 years beginning in or with calendar 

14 year 2019 (rounded to the nearest mul15 tiple of $1,000,000), or 

16 ‘‘(II) $200,000,000. 

17 ‘‘(ii) INFLATION ADJUSTMENT.—In the 

18 case of any calendar year after 2020, the 

19 term ‘base amount’ means the dollar 

20 amount determined under clause (i) in21 creased by an amount equal to— 

22 ‘‘(I) such dollar amount, multi23 plied by— 

24 ‘‘(II) the cost-of-living adjustment 

25 determined under section 1(f)(3) for 


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1 such calendar year, determined by sub2 stituting ‘calendar year 2019’ for ‘cal3 endar year 2016’ in subparagraph 

4 (A)(ii) thereof. 

5 Any amount determined under this clause 

6 shall be rounded to the nearest multiple of 

7 $1,000,000. 

8 ‘‘(4) RULES RELATED TO PAYMENTS AND RE9 PORTS.— 

10 ‘‘(A) TIMING OF PAYMENTS.—The Secretary 

11 shall make payments under paragraph (1) for 

12 any calendar year— 

13 ‘‘(i) after receipt of the report described 

14 in subparagraph (B) for such calendar 

15 year, and 

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

17 within a reasonable period of time before 

18 the due date for individual income tax re19 turns (as determined under the laws of 

20 Puerto Rico) for taxable years which began 

21 on the first day of such calendar year. 

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

23 calendar year 2020 and each calendar year 

24 thereafter, Puerto Rico shall provide to the Sec25 retary a report which shall include— 


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

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

3 with respect to such calendar year, and 

4 ‘‘(ii) a statement of such costs with re5 spect to the preceding calendar year. 

6 ‘‘(C) ADJUSTMENTS.— 

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

8 any estimate of an amount is more or less 

9 than the actual amount as later determined 

10 and any payment under paragraph (1) was 

11 determined on the basis of such estimate, 

12 proper payment shall be made by, or to, the 

13 Secretary (as the case may be) as soon as 

14 practicable after the determination that 

15 such estimate was inaccurate. Proper ad16 justment shall be made in the amount of 

17 any subsequent payments made under para18 graph (1) to the extent that proper payment 

19 is not made under the preceding sentence 

20 before such subsequent payments. 

21 ‘‘(ii) ADDITIONAL REPORTS.—The Sec22 retary may require such additional periodic 

23 reports of the information described in sub24 paragraph (B) as the Secretary determines 


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1 appropriate to facilitate timely adjustments 

2 under clause (i). 

3 ‘‘(D) DETERMINATION OF COST OF EARNED

4 INCOME TAX CREDIT.—For purposes of this sub5 section, the cost to Puerto Rico of the earned in6 come tax credit shall be determined by the Sec7 retary on the basis of the laws of Puerto Rico 

8 and shall include reductions in revenues received 

9 by Puerto Rico by reason of such credit and re10 funds attributable to such credit, but shall not 

11 include any administrative costs with respect to 

12 such credit. 

13 ‘‘(E) PREVENTION OF MANIPULATION OF

14 BASE AMOUNT.—No payments shall be made 

15 under paragraph (1) if the earned income tax 

16 credit as in effect in Puerto Rico for taxable 

17 years beginning in or with calendar year 2019 

18 is modified after the date of the enactment of this 

19 subsection. 

20 ‘‘(b) POSSESSIONS WITH MIRROR CODE TAX SYS21 TEMS.— 

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

23 year 2020 and each calendar year thereafter, the Sec24 retary shall, except as otherwise provided in this sub25 section, make payments to the Virgin Islands, Guam, 


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1 and the Commonwealth of the Northern Mariana Is2 lands equal to— 

3 ‘‘(A) 75 percent of the cost to such posses4 sion of the earned income tax credit for taxable 

5 years beginning in or with such calendar year, 

6 plus 

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

8 through 2024, the lesser of— 

9 ‘‘(i) the expenditures made by such 

10 possession during such calendar year for 

11 education efforts with respect to individual 

12 taxpayers and tax return preparers relating 

13 to such earned income tax credit, or 

14 ‘‘(ii) $50,000. 

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

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

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

18 of this subsection. 

19 ‘‘(c) AMERICAN SAMOA.— 

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

21 year 2020 and each calendar year thereafter, the Sec22 retary shall, except as otherwise provided in this sub23 section, make payments to American Samoa equal 

24 to— 

25 ‘‘(A) the lesser of— 


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1 ‘‘(i) 75 percent of the cost to American 

2 Samoa of the earned income tax credit for 

3 taxable years beginning in or with such cal4 endar year, or 

5 ‘‘(ii) $12,000,000, plus 

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

7 through 2024, the lesser of— 

8 ‘‘(i) the expenditures made by Amer9 ican Samoa during such calendar year for 

10 education efforts with respect to individual 

11 taxpayers and tax return preparers relating 

12 to such earned income tax credit, or 

13 ‘‘(ii) $50,000. 

14 ‘‘(2) REQUIREMENT TO ENACT AND MAINTAIN AN

15 EARNED INCOME TAX CREDIT.—The Secretary shall 

16 not make any payments under paragraph (1) with 

17 respect to any calendar year unless American Samoa 

18 has in effect an earned income tax credit for taxable 

19 years beginning in or with such calendar year which 

20 allows a refundable tax credit to individuals on the 

21 basis of the taxpayer’s earned income which is de22 signed to substantially increase workforce participa23 tion. 

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

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


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

2 an amount equal to— 

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

4 ‘‘(B) the cost-of-living adjustment deter5 mined under section 1(f)(3) for such calendar 

6 year, determined by substituting ‘calendar year 

7 2019’ for ‘calendar year 2016’ in subparagraph 

8 (A)(ii) thereof. 

9 Any increase determined under this clause shall be 

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

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

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

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

14 of this subsection. 

15 ‘‘(d) TREATMENT OF PAYMENTS.—For purposes of sec16 tion 1324 of title 31, United States Code, the payments 

17 under this section shall be treated in the same manner as 

18 a refund due from a credit provision referred to in sub19 section (b)(2) of such section.’’. 

20 (b) CLERICAL AMENDMENT.—The table of sections for 

21 chapter 77 of such Code is amended by adding at the end 

22 the following new item: 

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

States.’’. 


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1 TITLE II—CHILD TAX CREDIT 

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

3 AND 2020. 

4 (a) IN GENERAL.—Section 24(h) is amended by add5 ing at the end the following new paragraph: 

6 ‘‘(8) CREDIT FULLY REFUNDABLE FOR 2019 AND

7 2020.—In the case of an individual other than a non8 resident alien, for any taxable year beginning in 2019 

9 or 2020— 

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

11 not apply, and 

12 ‘‘(B) the increase determined under the first 

13 sentence of subsection (d)(1) shall be the amount 

14 determined under subparagraph (A) of such sub15 section (determined without regard to paragraph 

16 (4) of this subsection).’’. 

17 (b) EFFECTIVE DATE.—The amendment made by this 

18 section shall apply to taxable years beginning after Decem19 ber 31, 2018. 

20 SEC. 202. PAYMENTS TO POSSESSIONS. 

21 (a) MIRROR CODE POSSESSION.—The Secretary of the 

22 Treasury shall pay to each possession of the United States 

23 with a mirror code tax system amounts equal to the loss 

24 to that possession by reason of the application of section 

25 24 of the Internal Revenue Code of 1986 with respect to 


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1 taxable years beginning after 2018. Such amounts shall be 

2 determined by the Secretary of the Treasury based on infor3 mation provided by the government of the respective posses4 sion. 

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

6 Treasury shall pay to each possession of the United States 

7 which does not have a mirror code tax system amounts esti8 mated by the Secretary of the Treasury as being equal to 

9 the aggregate benefits that would have been provided to resi10 dents of such possession by reason of the application of sec11 tion 24 of such Code for taxable years beginning after 2018 

12 if the provisions of such section had been in effect in such 

13 possession. The preceding sentence shall not apply with re14 spect to any possession of the United States unless such pos15 session has a plan, which has been approved by the Sec16 retary of the Treasury, under which such possession will 

17 promptly distribute such payments to the residents of such 

18 possession in a manner which replicates to the greatest de19 gree practicable the benefits that would have been so pro20 vided to each such resident. 

21 (c) COORDINATION WITH CREDIT ALLOWED AGAINST

22 UNITED STATES INCOME TAXES.— 

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

24 against United States income taxes for any taxable 


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1 year under section 24 of the Internal Revenue Code 

2 of 1986 to any person— 

3 (A) to whom a credit is allowed against 

4 taxes imposed by a possession with a mirror code 

5 tax system by reason of the application of section 

6 24 of such Code in such possession for such tax7 able year, or 

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

9 plan described in subsection (b) with respect to 

10 such taxable year. 

11 (2) RESTRICTION ON REFUNDABLE CREDIT.—In 

12 the case of any person to whom a credit would be al13 lowed against taxes imposed by a possession which 

14 does not have a mirror code tax system if the provi15 sions of such section 24 had been in effect in such pos16 session for the taxable year (and who is not described 

17 in paragraph (1)(B)), section 24(h)(8) of such Code 

18 (as added by this Act) shall not apply to such person 

19 for such taxable year. 

20 (d) DEFINITIONS AND SPECIAL RULES.— 

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

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

23 United States’’ includes the Commonwealth of Puerto 

24 Rico and the Commonwealth of the Northern Mariana 

25 Islands. 


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

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

3 means, with respect to any possession of the United 

4 States, the income tax system of such possession if the 

5 income tax liability of the residents of such possession 

6 under such system is determined by reference to the 

7 income tax laws of the United States as if such pos8 session were the United States. 

9 (3) TREATMENT OF PAYMENTS.—For purposes of 

10 section 1324(b)(2) of title 31, United States Code, the 

11 payments under this section shall be treated in the 

12 same manner as a refund due from the credit allowed 

13 under section 24 of the Internal Revenue Code of 

14 1986. 

15 SEC. 203. INCREASED CHILD TAX CREDIT FOR CHILDREN 

16 WHO HAVE NOT ATTAINED AGE 4. 

17 (a) IN GENERAL.—Section 24(h)(2) is amended to 

18 read to as follows: 

19 ‘‘(2) CREDIT AMOUNT.— 

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

21 subparagraph (B), subsection (a) shall be ap22 plied by substituting ‘$2,000’ for ‘$1,000’. 

23 ‘‘(B) TAXABLE YEARS BEGINNING IN 2019

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1 plied by substituting ‘$2,000 ($3,000 in the case 

2 of a qualifying child who has not attained age 

3 4 as of the close of the calendar year in which 

4 the taxable year of the taxpayer begins)’ for 

5 ‘$1,000’.’’. 

6 (b) EFFECTIVE DATE.—The amendment made by this 

7 section shall apply to taxable years beginning after Decem8 ber 31, 2018. 

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 case 

16 of any taxable year beginning in 2019 or 2020— 

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

18 an individual other than a nonresident alien, the 

19 credit allowed under subsection (a) shall be treated as 

20 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’ in 

6 paragraph (1) thereof, and 

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

8 effect under paragraph (1)’ for ‘$6,000’ in para9 graph (2) thereof. 

10 ‘‘(4) INFLATION ADJUSTMENT OF DOLLAR

11 AMOUNTS.—In the case of any taxable year beginning 

12 after 2019, the $120,000 amount in paragraph (2)(B) 

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

14 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 year 

18 in which the taxable year begins, determined by 

19 substituting ‘2018’ for ‘2016’ in subparagraph 

20 (A)(ii) thereof. 

21 If any increase determined under this paragraph is 

22 not a multiple of $100, such increase shall be rounded 

23 to the next lowest multiple of $100. 

24 ‘‘(5) INCOME LIMITATION.— 


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1 ‘‘(A) IN GENERAL.—Paragraphs (1) through 

2 (4) of this subsection shall not apply to any tax3 payer for any taxable year if the modified ad4 justed gross income of such taxpayer for such 

5 taxable year exceeds $1,000,000. 

6 ‘‘(B) MODIFIED ADJUSTED GROSS IN7 COME.—For purposes of this paragraph, the 

8 term ‘modified adjusted gross income’ means ad9 justed gross income determined without regard to 

10 sections 911, 931, and 933.’’. 

11 (b) CONFORMING AMENDMENT.—Section 1324(b)(2) of 

12 title 31, United States Code, is amended by inserting ‘‘21 

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

14 (c) COORDINATION WITH POSSESSION TAX SYS15 TEMS.—Section 21(g)(1) of the Internal Revenue Code of 

16 1986 (as added by this section) shall not apply to any per17 son— 

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

19 imposed by a possession with a mirror code tax sys20 tem by reason of the application of section 21 of such 

21 Code in such possession for such taxable year, or 

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

23 taxes imposed by a possession which does not have a 

24 mirror code tax system if the provisions of section 21 


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1 of such Code had been in effect in such possession for 

2 such taxable year. 

3 (d) EFFECTIVE DATE.—The amendments made by this 

4 section shall apply to taxable years beginning after Decem5 ber 31, 2018. 

6 SEC. 302. INCREASE IN EXCLUSION FOR EMPLOYER-PRO7 VIDED DEPENDENT CARE ASSISTANCE. 

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

9 adding at the end the following new subparagraph: 

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

11 the case of any taxable year beginning in 2020 

12 or 2021— 

13 ‘‘(i) IN GENERAL.—Subparagraph (A) 

14 shall be applied be substituting ‘$10,500 

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

16 ($2,500’. 

17 ‘‘(ii) INFLATION ADJUSTMENT.—In the 

18 case of any taxable year beginning after 

19 2020, the $10,500 amount in clause (i) shall 

20 be increased by an amount equal to— 

21 ‘‘(I) such dollar amount, multi22 plied by 

23 ‘‘(II) the cost-of-living adjustment 

24 determined under section 1(f)(3) for 

25 the calendar year in which the taxable 


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1 year begins, determined by substituting 

2 ‘2019’ for ‘2016’ in subparagraph 

3 (A)(ii) thereof. 

4 Any increase determined under the pre5 ceding sentence which is not a multiple of 

6 $50, shall be rounded to the nearest mul7 tiple of $50.’’. 

8 (b) EFFECTIVE DATE.—The amendment made by this 

9 section shall apply to taxable years beginning after Decem10 ber 31, 2019. 

11 TITLE IV—CERTAIN FRINGE 

12 BENEFIT EXPENSES 

13 SEC. 401. REPEAL OF INCLUSION OF CERTAIN FRINGE BEN14 EFIT EXPENSES IN UNRELATED BUSINESS 

15 TAXABLE INCOME. 

16 (a) IN GENERAL.—Section 512(a) is amended by strik17 ing paragraph (7). 

18 (b) EFFECTIVE DATE.—The amendment made by this 

19 section shall take effect as if included in the amendments 

20 made by section 13703 of Public Law 115–97. 


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Union Calendar No. 307 

116TH CONGRESS 

2D SESSION H. R. 3300 

[Report No. 116–384] 

A BILL 

To amend the Internal Revenue Code of 1986 to 

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

FEBRUARY 4, 2020 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 


pamtmann on DSKBC07HB2PROD with BILLS