I 

111TH CONGRESS 

2D SESSION H. R. 5075 

To amend the Internal Revenue Code of 1986 to modify the dependent 

care tax credit and to extend and increase the additional standard deduction for State and local real property taxes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 20, 2010 

Mr. ADLER of New Jersey 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 modify 

the dependent care tax credit and to extend and increase 

the additional standard deduction for State and local 

real property taxes. 

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 ‘‘Middle Class Tax Re5 lief Act’’. 


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1 SEC. 2. MODIFICATION OF DEPENDENT CARE CREDIT. 

2 (a) INCREASE IN DOLLAR LIMITATION.—Subsection 

3 (c) of section 21 of the Internal Revenue Code of 1986 

4 is amended— 

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

6 inserting ‘‘$6,000’’, and 

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

8 inserting ‘‘$12,000’’. 

9 (b) INCREASED PHASEOUT THRESHOLD.—Para10 graph (2) of section 21(a) of the Internal Revenue Code 

11 of 1986 (defining applicable percentage) is amended by 

12 striking ‘‘$15,000’’ and inserting ‘‘$60,000’’. 

13 (c) MODIFICATION OF CREDIT FOR EXPENSES FOR

14 HOUSEHOLD AND DEPENDENT CARE SERVICES NEC15 ESSARY FOR GAINFUL EMPLOYMENT.— 

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

17 21(b) of the Internal Revenue Code of 1986 (relat18 ing to qualifying individual) is amended by striking 

19 ‘‘or’’ at the end of subparagraph (B), by striking the 

20 period at the end of subparagraph (C) and inserting 

21 ‘‘, or,’’ and by adding at the end the following new 

22 subparagraph: 

23 ‘‘(D) a dependent of the taxpayer (as de24 fined in section 152, determined without regard 

25 to subsections (b)(1), (b)(2), and (d)(1)(B)) 

26 who is the father or mother of the taxpayer (or 


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1 an ancestor of such father or mother) and who 

2 is physically or mentally incapable of caring for 

3 himself or herself.’’. 

4 (2) CONFORMING AMENDMENT.—Section 

5 21(b)(1)(B) of such Code is amended by inserting 

6 ‘‘(other than a dependent described in subparagraph 

7 (D))’’ after ‘‘and (d)(1)(B))’’. 

8 (d) REPEAL OF EGTRRA SUNSET FOR INCREASED

9 DOLLAR LIMIT.—Title IX of the Economic Growth and 

10 Tax Relief Reconciliation Act of 2001 shall not apply to 

11 section 204(a) of such Act. 

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

13 this section shall apply to taxable years beginning after 

14 December 31, 2009. 

15 SEC. 3. ADDITIONAL STANDARD DEDUCTION FOR STATE 

16 AND LOCAL REAL PROPERTY TAXES. 

17 (a) ONE-YEAR EXTENSION.—Subparagraph (C) of 

18 section 63(c)(1) of the Internal Revenue Code of 1986 is 

19 amended by striking ‘‘or 2009’’ and inserting ‘‘, 2009, or 

20 2010’’. 

21 (b) INCREASE IN DEDUCTION ALLOWABLE.—Para22 graph (7) of section 63(c) of such Code is amended by 

23 striking ‘‘the lesser of—’’ and all that follows through 

24 ‘‘Any taxes’’ and inserting ‘‘the amount allowable as a deVerDate Nov 24 2008 16:44 Apr 21, 2010 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H5075.IH H5075

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1 duction under this chapter for State and local taxes de2 scribed in section 164(a)(1). Any taxes’’. 

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

4 this section shall apply to taxable years beginning after 

5 December 31, 2009. 

Æ 


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