I 

110TH CONGRESS 

2D SESSION H. R. 5655 

To amend the Internal Revenue Code of 1986 to expand and improve the 

dependent care tax credit. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 14, 2008 

Mr. WEINER 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 expand 

and improve 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, 

3 SECTION 1. EXPANSION AND IMPROVEMENT OF DEPEND4 ENT CARE TAX CREDIT. 

5 (a) INCREASE IN DOLLAR LIMIT ON AMOUNT OF EM6 PLOYMENT-RELATED EXPENSES WHICH ARE CRED7 ITABLE.—Subsection (c) of section 21 of the Internal Rev8 enue Code of 1986 is amended— 

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

10 inserting ‘‘$6,000 ($9,000 in the case of a taxpayer 


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1 whose adjusted gross income is less than $30,000)’’, 

2 and 

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

4 inserting ‘‘$12,000 ($18,000 in the case of a tax5 payer whose adjusted gross income is less than 

6 $30,000)’’. 

7 (b) REPEAL OF REQUIREMENT THAT DEPENDENT

8 AND TAXPAYER SHARE THE SAME PLACE OF ABODE.— 

9 (1) IN GENERAL.—Paragraph (1) of section 

10 21(b) of such Code is amended— 

11 (A) by inserting ‘‘(determined without re12 gard to section 152(c)(1)(B))’’ after ‘‘section 

13 152(a)(1)’’ in subparagraph (A), and 

14 (B) by striking ‘‘and who has the same 

15 principal place of abode as the taxpayer for 

16 more than one-half of such taxable year’’ in 

17 subparagraphs (B) and (C). 

18 (2) EXPENSES FOR CARE OF DEPENDENT OUT19 SIDE OF HOME TAKEN INTO ACCOUNT.— 

20 (A) IN GENERAL.—Paragraph (2) of sec21 tion 21(b) of such Code is amended by striking 

22 subparagraph (B) and by redesignating sub23 paragraphs (C) and (D) as subparagraphs (B) 

24 and (C), respectively. 


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1 (B) CONFORMING AMENDMENT.—Subpara2 graph (B) of section 21(b)(2) of such Code, as 

3 redesignated by subparagraph (A), is amended 

4 by striking ‘‘a dependent care center’’ and all 

5 that follows and inserting ‘‘a dependent care 

6 center shall be taken into account only if such 

7 center complies with all applicable laws and reg8 ulations of a State or unit of local govern9 ment.’’. 

10 (c) RETIREES MADE ELIGIBLE FOR CREDIT.—Sub11 section (f) of section 21 of such Code is amended— 

12 (1) by striking ‘‘The Secretary’’ and inserting 

13 the following: 

14 ‘‘(1) IN GENERAL.—The Secretary’’, and 

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

16 paragraph: 

17 ‘‘(2) ELIGIBILITY OF RETIREES FOR CREDIT.— 

18 The Secretary shall prescribe regulations under 

19 which retirees may be eligible for the credit provided 

20 under this section. Such regulations may deem such 

21 retirees to be gainfully employed and to have earned 

22 income, to such extent and in such amounts as the 

23 Secretary determines appropriate, for purposes of 

24 this section.’’. 

25 (d) CREDIT MADE REFUNDABLE.— 


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1 (1) IN GENERAL.—Part IV of subchapter A of 

2 chapter 1 of such Code is amended— 

3 (A) by redesignating section 36 as section 

4 37, 

5 (B) by moving section 21, as otherwise 

6 amended by this section, after section 35, and 

7 (C) by redesignating such section 21 as 

8 section 36. 

9 (2) CONFORMING AMENDMENTS.— 

10 (A) Paragraph (2) of section 1324(b) of 

11 title 31, United States Code, is amended by in12 serting ‘‘or 36’’ after ‘‘section 35’’. 

13 (B) The table of sections for subpart A of 

14 such part is amended by striking the item relat15 ing to section 21. 

16 (C) The table of sections for subpart C of 

17 such part is amended by redesignating the item 

18 relating to section 36 as an item relating to sec19 tion 37 and by inserting after the item relating 

20 to section 35 the following new item: 

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

gainful employment.’’. 

21 (e) CERTAIN PRIOR IMPROVEMENTS TO CREDIT

22 MADE PERMANENT.—Section 901 of the Economic 

23 Growth and Tax Relief Reconciliation Act of 2001 shall 


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1 not apply to the amendments made by section 204 of such 

2 Act. 

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

4 this section shall apply to taxable years beginning after 

5 the date of the enactment of this Act. 

Æ 


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