II 

113TH CONGRESS 

2D SESSION S. 2565 

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

care tax credit, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 8, 2014 

Mrs. SHAHEEN (for herself, Mrs. BOXER, Mrs. MURRAY, Mrs. GILLIBRAND, 

and Ms. MIKULSKI) introduced the following bill; which was read twice 

and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to enhance 

the dependent care tax credit, and for other purposes. 

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 ‘‘Helping Working Fam5 ilies Afford Child Care Act’’. 

6 SEC. 2. ENHANCEMENT OF THE DEPENDENT CARE TAX 

7 CREDIT. 

8 (a) INCREASE IN DEPENDENT CARE TAX CREDIT.— 

9 (1) INCREASE IN INCOMES ELIGIBLE FOR FULL

10 CREDIT.—Paragraph (2) of section 21(a) of the InVerDate Mar 15 2010 03:50 Jul 09, 2014 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S2565.IS S2565

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1 ternal Revenue Code of 1986 is amended to read as 

2 follows: 

3 ‘‘(2) APPLICABLE PERCENTAGE DEFINED.—For 

4 purposes of paragraph (1), the term ‘applicable per5 centage’ means 20 percent reduced (but not below 

6 zero) by 1 percentage point for each $5,000 (or frac7 tion thereof) by which the taxpayer’s adjusted gross 

8 income for the taxable year exceeds $200,000.’’. 

9 (2) INCREASE IN DOLLAR LIMIT ON AMOUNT

10 CREDITABLE.—Subsection (c) of section 21 of the 

11 Internal Revenue Code of 1986 is amended— 

12 (A) by striking ‘‘$3,000’’ in paragraph (1) 

13 and inserting ‘‘$8,000’’, and 

14 (B) by striking ‘‘$6,000’’ in paragraph (2) 

15 and inserting ‘‘$16,000’’. 

16 (3) INFLATION ADJUSTMENT.—Section 21 of 

17 the Internal Revenue Code of 1986 is amended— 

18 (A) by redesignating subsection (f) as sub19 section (g), and 

20 (B) by inserting after subsection (e) the 

21 following new subsection: 

22 ‘‘(f) INFLATION ADJUSTMENT.— 

23 ‘‘(1) IN GENERAL.—In the case of any taxable 

24 year beginning after 2015, the $200,000 amount in 

25 subsection (a)(2) and each of the dollar amounts in 


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1 subsection (c) shall each be increased by an amount 

2 equal to— 

3 ‘‘(A) such dollar amount, multiplied by 

4 ‘‘(B) the cost-of-living adjustment deter5 mined under section 1(f)(3) for the calendar 

6 year in which the taxable year begins, by sub7 stituting ‘2014’ for ‘1992’ in subparagraph (B) 

8 thereof. 

9 ‘‘(2) ROUNDING.—The amount of any increase 

10 under paragraph (1) shall be rounded— 

11 ‘‘(A) for purposes of the dollar amount in 

12 subsection (a)(2), the nearest multiple of 

13 $1,000, and 

14 ‘‘(B) for purposes of the dollar amounts in 

15 subsection (c), the nearest multiple of $100.’’. 

16 (b) DEPENDENT CARE TAX CREDIT TO BE REFUND17 ABLE.— 

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

19 of 1986 is amended— 

20 (A) by redesignating section 21, as amend21 ed by subsection (a), as section 36C, and 

22 (B) by moving section 36C, as so redesig23 nated, from subpart A of part IV of subchapter 

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1 fore section 37 in subpart C of part IV of sub2 chapter A of chapter 1. 

3 (2) TECHNICAL AMENDMENTS.— 

4 (A) Paragraph (1) of section 23(f) of the 

5 Internal Revenue Code of 1986 is amended by 

6 striking ‘‘21(e)’’ and inserting ‘‘36C(e)’’. 

7 (B) Paragraph (6) of section 35(g) of such 

8 Code is amended by striking ‘‘21(e)’’ and in9 serting ‘‘36C(e)’’. 

10 (C) Paragraph (1) of section 36C(a) of 

11 such Code (as redesignated by paragraph (1)) 

12 is amended by striking ‘‘this chapter’’ and in13 serting ‘‘this subtitle’’. 

14 (D) Subparagraph (C) of section 129(a)(2) 

15 of such Code is amended by striking ‘‘section 

16 21(e)’’ and inserting ‘‘section 36C(e)’’. 

17 (E) Paragraph (2) of section 129(b) of 

18 such Code is amended by striking ‘‘section 

19 21(d)(2)’’ and inserting ‘‘section 36C(d)(2)’’. 

20 (F) Paragraph (1) of section 129(e) of 

21 such Code is amended by striking ‘‘section 

22 21(b)(2)’’ and inserting ‘‘section 36C(b)(2)’’. 

23 (G) Subsection (e) of section 213 of such 

24 Code is amended by striking ‘‘section 21’’ and 

25 inserting ‘‘section 36C’’. 


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1 (H) Subparagraph (A) of section 

2 6211(b)(4) of such Code is amended by insert3 ing ‘‘36C,’’ after ‘‘36B,’’. 

4 (I) Subparagraph (H) of section 

5 6213(g)(2) of such Code is amended by striking 

6 ‘‘section 21’’ and inserting ‘‘section 36C’’. 

7 (J) Subparagraph (L) of section 

8 6213(g)(2) of such Code is amended by striking 

9 ‘‘section 21, 24, 32,’’ and inserting ‘‘section 24, 

10 32, 36C,’’. 

11 (K) Paragraph (2) of section 1324(b) of 

12 title 31, United States Code, is amended by in13 serting ‘‘36C,’’ after ‘‘36B,’’. 

14 (L) The table of sections for subpart C of 

15 part IV of subchapter A of chapter 1 of the In16 ternal Revenue Code of 1986 is amended by in17 serting after the item relating to section 36B 

18 the following: 

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

gainful employment.’’. 

19 (M) The table of sections for subpart A of 

20 such part IV of such Code is amended by strik21 ing the item relating to section 21. 


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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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