II 

114TH CONGRESS 

1ST SESSION S. 820 

To amend the Internal Revenue Code of 1986 to enhance the Child and 

Dependent Care Tax Credit and make the credit fully refundable. 

IN THE SENATE OF THE UNITED STATES 

MARCH 19, 2015 

Mr. CASEY 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 Child and Dependent Care Tax Credit and make 

the credit fully refundable. 

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 ‘‘Child and Dependent 

5 Care Tax Credit Enhancement Act of 2015’’. 

6 SEC. 2. ENHANCEMENT OF CHILD AND DEPENDENT CARE 

7 TAX CREDIT. 

8 (a) IN GENERAL.—Paragraph (2) of section 21(a) of 

9 the Internal Revenue Code of 1986 is amended to read 

10 as follows: 


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1 ‘‘(2) APPLICABLE PERCENTAGE.—For purposes 

2 of paragraph (1), the term ‘applicable percentage’ 

3 means— 

4 ‘‘(A) in the case of employment-related ex5 penses incurred for the care of a qualifying in6 dividual who has not attained 5 years of age be7 fore the close of the taxable year, 50-percent re8 duced (but not below 20 percent) by 1 percent9 age point for each $2,000 (or fraction thereof) 

10 by which the taxpayer’s adjusted gross income 

11 for the taxable year exceeds $120,000, and 

12 ‘‘(B) in the case of any employment-related 

13 expenses which are not described in subpara14 graph (A), 35-percent reduced (but not below 

15 20 percent) by 1 percentage point for each 

16 $2,000 (or fraction thereof) by which the tax17 payer’s adjusted gross income for the taxable 

18 year exceeds $120,000.’’. 

19 (b) INCREASE IN DOLLAR LIMIT ON AMOUNT CRED20 ITABLE.—Paragraphs (1) and (2) of section 21(c) of such 

21 Code are amended to read as follows: 

22 ‘‘(1) in the case of 1 qualifying individual with 

23 respect to the taxpayer for such taxable year— 


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1 ‘‘(A) if such qualifying individual has at2 tained 5 years of age before the close of the 

3 taxable year, $3,000, or 

4 ‘‘(B) if such qualifying individual has not 

5 attained 5 years of age before the close of the 

6 taxable year, $6,000, or 

7 ‘‘(2) in the case of 2 or more qualifying individ8 uals with respect to the taxpayer for such taxable 

9 year— 

10 ‘‘(A) if 1 of such qualifying individuals has 

11 not attained 5 years of age before the close of 

12 the taxable year, $9,000, or 

13 ‘‘(B) if 2 or more of such qualifying indi14 viduals have not attained 5 years of age before 

15 the close of the taxable year, $12,000.’’. 

16 (c) ADJUSTMENT FOR INFLATION.—Section 21 of 

17 such Code is amended— 

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

20 (2) by inserting after subsection (e) the fol21 lowing new subsection: 

22 ‘‘(f) INFLATION ADJUSTMENT.— 

23 ‘‘(1) IN GENERAL.—In the case of a calendar 

24 year beginning after 2016, the $120,000 dollar 

25 amounts in subparagraphs (A) and (B) of subsection 


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1 (a)(2) and the dollar amounts in subsection (c) shall 

2 each be increased by an amount 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, deter7 mined by substituting ‘calendar year 2015’ for 

8 ‘calendar year 1992’ in subparagraph (B) 

9 thereof. 

10 ‘‘(2) ROUNDING.—If any dollar amount, after 

11 being increased under paragraph (1), is not a mul12 tiple of $100, such dollar amount shall be rounded 

13 to the next lowest multiple of $100.’’. 

14 (d) CREDIT TO BE REFUNDABLE.— 

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

16 of 1986 is amended— 

17 (A) by redesignating section 21 as section 

18 36C, and 

19 (B) by moving section 36C, as so redesig20 nated, from subpart A of part IV of subchapter 

21 A of chapter 1 to the location immediately be22 fore section 37 in subpart C of part IV of sub23 chapter A of chapter 1. 

24 (2) TECHNICAL AMENDMENTS.— 


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

2 Internal Revenue Code of 1986 is amended by 

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

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

5 Code is amended by striking ‘‘21(e)’’ and in6 serting ‘‘36C(e)’’. 

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

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

9 is amended by striking ‘‘this chapter’’ and in10 serting ‘‘this subtitle’’. 

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

12 of such Code is amended by striking ‘‘section 

13 21(e)’’ and inserting ‘‘section 36C(e)’’. 

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

15 such Code is amended by striking ‘‘section 

16 21(d)(2)’’ and inserting ‘‘section 36C(d)(2)’’. 

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

18 such Code is amended by striking ‘‘section 

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

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

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

22 inserting ‘‘section 36C’’. 

23 (H) Subparagraph (H) of section 

24 6213(g)(2) of such Code is amended by striking 

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


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1 (I) Subparagraph (L) of section 

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

3 ‘‘section 21, 24, or 32,’’ and inserting ‘‘section 

4 24, 32, or 36C,’’. 

5 (J) Paragraph (2) of section 1324(b) of 

6 title 31, United States Code, is amended by in7 serting ‘‘36C,’’ after ‘‘36B,’’. 

8 (K) The table of sections for subpart C of 

9 part IV of subchapter A of chapter 1 of the In10 ternal Revenue Code of 1986 is amended by in11 serting after the item relating to section 36B 

12 the following: 

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

gainful employment.’’. 

13 (L) The table of sections for subpart A of 

14 such part IV is amended by striking the item 

15 relating to section 21. 

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

17 this section shall apply to taxable years beginning after 

18 December 31, 2015. 

Æ 


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