I 

116TH CONGRESS 

1ST SESSION H. R. 1967 

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 

MARCH 28, 2019 

Mr. DANNY K. DAVIS of Illinois (for himself and Ms. DELBENE) 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 Enhancement Act of 2019’’. 

6 SEC. 2. ENHANCEMENT OF CHILD AND DEPENDENT CARE 

7 TAX CREDIT. 

8 (a) IN GENERAL.—Section 21(a)(2) of the Internal 

9 Revenue Code of 1986 is amended to read 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 $120,000.’’. 

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

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

10 inserting ‘‘$6,000’’, and 

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

12 inserting ‘‘$12,000’’. 

13 (c) SPECIAL RULE FOR MARRIED COUPLES FILING

14 SEPARATE RETURNS.—Section 21(e)(2) of such Code is 

15 amended to read as follows: 

16 ‘‘(2) MARRIED COUPLES FILING SEPARATE RE17 TURNS.— 

18 ‘‘(A) IN GENERAL.—In the case of a mar19 ried individual who files a separate return for 

20 a taxable year— 

21 ‘‘(i) the limits under subsections (a) 

22 and (c) shall be applied to the individual 

23 and the individual’s spouse as if they had 

24 filed a joint return, and 


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1 ‘‘(ii) the aggregate amount of the 

2 credit allowed under this section for such 

3 taxable year to both spouses shall not ex4 ceed the amount that would have been al5 lowed if the spouses had filed a joint re6 turn. 

7 ‘‘(B) REGULATIONS.—The Secretary shall 

8 prescribed such regulations or other guidance 

9 as is necessary to carry out the purposes of this 

10 subsection.’’. 

11 (d) ADJUSTMENT FOR INFLATION.—Section 21 of 

12 such Code is amended— 

13 (1) by redesignating subsection (f) as sub14 section (g), and 

15 (2) by inserting after subsection (e) the fol16 lowing new subsection: 

17 ‘‘(f) INFLATION ADJUSTMENT.— 

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

19 year beginning after 2020, the $120,000 amount in 

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

21 amounts in subsection (c) shall each 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 the calendar 


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1 year in which the taxable year begins, deter2 mined by substituting ‘calendar year 2019’ for 

3 ‘calendar year 2016’ in subparagraph (A)(ii) 

4 thereof. 

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

6 being increased under paragraph (1), is not a mul7 tiple of $100, such dollar amount shall be rounded 

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

9 (e) CREDIT TO BE REFUNDABLE.— 

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

11 of 1986 is amended— 

12 (A) by redesignating section 21 as section 

13 36C, and 

14 (B) by moving section 36C, as so redesig15 nated, from subpart A of part IV of subchapter 

16 A of chapter 1 to the location immediately be17 fore section 37 in subpart C of part IV of sub18 chapter A of chapter 1. 

19 (2) TECHNICAL AMENDMENT.— 

20 (A) Section 23(f)(1) of the Internal Rev21 enue Code of 1986 is amended by striking 

22 ‘‘21(e)’’ and inserting ‘‘36C(e)’’. 

23 (B) Section 35(g)(6) of such Code is 

24 amended by striking ‘‘21(e)’’ and inserting 

25 ‘‘36C(e)’’. 


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1 (C) Section 36C(a)(1) of such Code (as re2 designated by paragraph (1)) is amended by 

3 striking ‘‘this chapter’’ and inserting ‘‘this sub4 title’’. 

5 (D) Section 129(a)(2)(C) of such Code is 

6 amended by striking ‘‘section 21(e)’’ and insert7 ing ‘‘section 36C(e)’’. 

8 (E) Section 129(b)(2) of such Code is 

9 amended by striking ‘‘section 21(d)(2)’’ and in10 serting ‘‘section 36C(d)(2)’’. 

11 (F) Section 129(e)(1) of such Code is 

12 amended by striking ‘‘section 21(b)(2)’’ and in13 serting ‘‘section 36C(b)(2)’’. 

14 (G) Section 213(e) of such Code is amend15 ed by striking ‘‘section 21’’ and inserting ‘‘sec16 tion 36C’’. 

17 (H) Section 6213(g)(2)(H) of such Code is 

18 amended by striking ‘‘section 21’’ and inserting 

19 ‘‘section 36C’’. 

20 (I) Section 6213(g)(2)(L) of such Code is 

21 amended by striking ‘‘section 21, 24, or 32’’ 

22 and inserting ‘‘section 24, 32, or 36C’’. 

23 (J) Section 1324(b)(2) of title 31, United 

24 States Code, is amended by inserting ‘‘36C,’’ 

25 after ‘‘36B,’’. 


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

2 part IV of subchapter A of chapter 1 of the In3 ternal Revenue Code of 1986 is amended by in4 serting after the item relating to section 36B 

5 the following: 

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

gainful employment.’’. 

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

7 such part IV is amended by striking the item 

8 relating to section 21. 

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

10 this section shall apply to taxable years beginning after 

11 December 31, 2019. 

Æ 


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