II 

114TH CONGRESS 

1ST SESSION S. 661 

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 

MARCH 4, 2015 

Mrs. MURRAY (for herself, Mrs. SHAHEEN, Mr. BROWN, Mr. DURBIN, Mr. 

REID, Mr. SCHUMER, Ms. STABENOW, Mr. WYDEN, and Mrs. GILLIBRAND) 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.— 

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1 (1) INCREASE IN INCOMES ELIGIBLE FOR FULL

2 CREDIT.—Paragraph (2) of section 21(a) of the In3 ternal Revenue Code of 1986 is amended to read as 

4 follows: 

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

6 purposes of paragraph (1), the term ‘applicable per7 centage’ means 35 percent reduced (but not below 

8 zero) by 1 percentage point for each $5,000 (or frac9 tion thereof) by which the taxpayer’s adjusted gross 

10 income for the taxable year exceeds $110,000.’’. 

11 (2) INCREASE IN DOLLAR LIMIT ON AMOUNT

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

13 Internal Revenue Code of 1986 is amended— 

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

15 and inserting ‘‘$8,000’’, and 

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

17 and inserting ‘‘$16,000’’. 

18 (3) INFLATION ADJUSTMENT.—Section 21 of 

19 the Internal Revenue Code of 1986 is amended— 

20 (A) by redesignating subsection (f) as sub21 section (g), and 

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

23 following new subsection: 

24 ‘‘(f) INFLATION ADJUSTMENT.— 

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

2 year beginning after 2016, the $110,000 amount in 

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

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

5 equal to— 

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

7 ‘‘(B) the cost-of-living adjustment deter8 mined under section 1(f)(3) for the calendar 

9 year in which the taxable year begins, by sub10 stituting ‘2015’ for ‘1992’ in subparagraph (B) 

11 thereof. 

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

13 under paragraph (1) shall be rounded— 

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

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

16 $1,000, and 

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

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

19 (b) DEPENDENT CARE TAX CREDIT TO BE REFUND20 ABLE.— 

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

22 of 1986 is amended— 

23 (A) by redesignating section 21, as amend24 ed by subsection (a), as section 36C, and 

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1 (B) by moving section 36C, as so redesig2 nated, from subpart A of part IV of subchapter 

3 A of chapter 1 to the location immediately be4 fore section 37 in subpart C of part IV of sub5 chapter A of chapter 1. 

6 (2) TECHNICAL AMENDMENTS.— 

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

8 Internal Revenue Code of 1986 is amended by 

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

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

11 Code is amended by striking ‘‘21(e)’’ and in12 serting ‘‘36C(e)’’. 

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

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

15 is amended by striking ‘‘this chapter’’ and in16 serting ‘‘this subtitle’’. 

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

18 of such Code is amended by striking ‘‘section 

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

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

21 such Code is amended by striking ‘‘section 

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

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

24 such Code is amended by striking ‘‘section 

25 21(b)(2)’’ and inserting ‘‘section 36C(b)(2)’’. 

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

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

3 inserting ‘‘section 36C’’. 

4 (H) Subparagraph (A) of section 

5 6211(b)(4) of such Code is amended by insert6 ing ‘‘36C,’’ after ‘‘36B,’’. 

7 (I) Subparagraph (H) of section 

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

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

10 (J) Subparagraph (L) of section 

11 6213(g)(2) of such Code is amended by striking 

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

13 32, 36C,’’. 

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

15 title 31, United States Code, is amended by in16 serting ‘‘36C,’’ after ‘‘36B,’’. 

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

18 part IV of subchapter A of chapter 1 of the In19 ternal Revenue Code of 1986 is amended by in20 serting after the item relating to section 36B 

21 the following: 

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

gainful employment.’’. 

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

23 such part IV of such Code is amended by strik24 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, 2015. 

Æ 

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