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107TH CONGRESS

1ST SESSION H. R. 1126

To amend the Internal Revenue Code of 1986 to allow all taxpayers who

maintain households with dependents a credit for dependents.

IN THE HOUSE OF REPRESENTATIVES

MARCH 20, 2001

Mr. RYUN of Kansas 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 allow all

taxpayers who maintain households with dependents a

credit for dependents.

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 ‘‘Family Care Tax Cred5 it Act’’.

6 SEC. 2. HOUSEHOLDS WITH DEPENDENTS.

7 (a) ALLOWANCE OF CREDIT.—Paragraph (1) of sec8 tion 21(a) of the Internal Revenue Code of 1986 (relating

9 to allowance of credit for expenses for household and de10 pendent care services necessary for gainful employment)
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1 is amended by striking ‘‘employment-related expenses (as

2 defined in subsection (b)(2)) paid by such individual dur3 ing the taxable year’’ and inserting ‘‘allowable amount’’.

4 (b) APPLICABLE PERCENTAGE DEFINED.—Para5 graph (2) of section 21(a) of such Code (relating to appli6 cable percentage defined) is amended—

7 (1) by striking ‘‘30 percent reduced (but not

8 below 20 percent)’’ and inserting ‘‘50 percent re9 duced’’, and

10 (2) by striking ‘‘$10,000’’ and inserting

11 ‘‘$30,000’’.

12 (c) DOLLAR LIMIT.—Subsection (c) of section 21 of

13 such Code is amended to read as follows:

14 ‘‘(c) ALLOWABLE AMOUNT.—

15 ‘‘(1) IN GENERAL.—The allowable amount

16 which may be taken into account under subsection

17 (a) is the sum of—

18 ‘‘(A) $200 times the number of months in

19 the taxable year of the taxpayer during which

20 there is not 1 day on which the taxpayer is

21 gainfully employed, plus

22 ‘‘(B) the employment-related expenses paid

23 by the taxpayer during the taxable year.

24 ‘‘(2) LIMITATION.—The amount determined

25 under paragraph (1) shall not exceed—
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1 ‘‘(A) $2,400 if there is 1 qualifying indi2 vidual with respect to the taxpayer for such tax3 able year, or

4 ‘‘(B) $4,800 if there are 2 or more quali5 fying individuals with respect to the taxpayer

6 for such taxable year.

7 ‘‘(3) REDUCTION FOR EMPLOYER-PROVIDED

8 DEPENDENT CARE ASSISTANCE.—The amount deter9 mined under paragraph (1) (after the application of

10 paragraph (2)) shall be reduced by the aggregate

11 amount excludable from gross income under section

12 129 for the taxable year.’’.

13 (d) CONFORMING AMENDMENTS.—

14 (1) The heading for section 21 of such Code is

15 amended to read as follows:

16 ‘‘SEC. 21. HOUSEHOLDS WITH DEPENDENTS.’’

17 (2) Paragraph (2) of section 21(d) of such Code

18 is amended—

19 (A) in subparagraph (A) by striking ‘‘sub20 section (c)(1)’’ and inserting ‘‘subsection

21 (c)(2)(A)’’, and

22 (B) in subparagraph (B) by striking ‘‘sub23 section (c)(2)’’ and inserting ‘‘subsection

24 (c)(2)(B)’’.
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1 (3) Subparagraph (H) of section 6213(g)(2) of

2 such Code is amended by striking ‘‘expenses for

3 household and dependent care services necessary for

4 gainful employment’’ and inserting ‘‘households with

5 dependents’’.

6 (e) CLERICAL AMENDMENT.—The item relating to

7 section 21 in the table of sections for subpart A of part

8 IV of subchapter A of chapter 1 of such Code is amended

9 to read as follows:

‘‘Sec. 21. Households with dependents.’’

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

11 this section shall apply to taxable years beginning after

12 December 31, 2000.

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