I 

113TH CONGRESS 

2D SESSION H. R. 5258 

To amend the Internal Revenue Code of 1986 to index the dependent care 

credit and income exclusion for inflation. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 30, 2014 

Mrs. CAPITO (for herself, Mrs. MCMORRIS RODGERS, Mrs. WAGNER, Mrs. 

ELLMERS, Mrs. BACHMANN, Mr. VALADAO, Mr. RODNEY DAVIS of Illinois, Ms. GRANGER, Mrs. LUMMIS, and Mr. FITZPATRICK) 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 index 

the dependent care credit and income exclusion for inflation. 

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 ‘‘Families First Act’’. 

5 SEC. 2. INFLATION ADJUSTMENTS OF CREDIT AND EXCLU6 SION FOR DEPENDENT CARE EXPENSES. 

7 (a) CREDIT.— 


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•HR 5258 IH

1 (1) IN GENERAL.—Section 21(e) of the Internal 

2 Revenue Code of 1986 is amended by adding at the 

3 end the following new paragraph: 

4 ‘‘(11) INFLATION ADJUSTMENT.— 

5 ‘‘(A) IN GENERAL.—In the case of any 

6 taxable year beginning in a calendar year after 

7 2014, the dollar amounts in subsections (a)(2) 

8 and (c)(2) shall each be increased by an 

9 amount equal to— 

10 ‘‘(i) such dollar amount, multiplied by 

11 ‘‘(ii) the cost-of-living adjustment de12 termined under section 1(f)(3) for the cal13 endar year in which the taxable year be14 gins, determined by substituting ‘calendar 

15 year 2013’ for ‘calendar year 1992’ in sub16 paragraph (B) thereof. 

17 ‘‘(B) ROUNDING.—Any increase deter18 mined under subparagraph (A) shall be rounded 

19 to the nearest multiple of $10.’’. 

20 (2) DOLLAR LIMIT ON AMOUNT CREDITABLE.— 

21 Section 21(c)(1) of the Internal Revenue Code of 

22 1986 is amended by striking ‘‘$3,000’’ and inserting 

23 ‘‘50 percent of the amount in effect under para24 graph (2) for the taxable year’’. 

25 (b) EXCLUSION.— 


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•HR 5258 IH

1 (1) IN GENERAL.—Section 129(e) of the Inter2 nal Revenue Code of 1986 is amended by adding at 

3 the end the following new paragraph: 

4 ‘‘(10) INFLATION ADJUSTMENT.— 

5 ‘‘(A) IN GENERAL.—In the case of any 

6 taxable year beginning in a calendar year after 

7 2014, the dollar amount in subsection (a)(2)(A) 

8 shall be increased by an amount equal to— 

9 ‘‘(i) such dollar amount, multiplied by 

10 ‘‘(ii) the cost-of-living adjustment de11 termined under section 1(f)(3) for the cal12 endar year in which the taxable year be13 gins, determined by substituting ‘calendar 

14 year 2013’ for ‘calendar year 1992’ in sub15 paragraph (B) thereof. 

16 ‘‘(B) ROUNDING.—Any increase deter17 mined under subparagraph (A) shall be rounded 

18 to the nearest multiple of $10.’’. 

19 (2) LIMITATION ON EXCLUSION.—Section 

20 129(a)(2)(A) of the Internal Revenue Code of 1986 

21 is amended by striking ‘‘$2,500’’ and inserting ‘‘50 

22 percent of such amount’’. 


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•HR 5258 IH

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

2 this section shall apply to taxable years beginning after 

3 December 31, 2014. 

Æ 


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