I 

111TH CONGRESS 

1ST SESSION H. R. 3434 

To amend the Internal Revenue Code of 1986 to modify the credit for 

expenses for household and dependent care services necessary for gainful 

employment. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 30, 2009 

Mr. DONNELLY of Indiana 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 modify 

the credit for expenses for household and dependent care 

services necessary for gainful employment. 

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 ‘‘Tax Relief for Working 

5 Caregivers Act of 2009’’. 


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•HR 3434 IH

1 SEC. 2. MODIFICATION OF CREDIT FOR EXPENSES FOR 

2 HOUSEHOLD AND DEPENDENT CARE SERV3 ICES NECESSARY FOR GAINFUL EMPLOY4 MENT. 

5 (a) INCREASED PHASEOUT THRESHOLD.—Para6 graph (2) of section 21(a) of the Internal Revenue Code 

7 of 1986 (defining applicable percentage) is amended by 

8 striking ‘‘$15,000’’ and inserting ‘‘$75,000’’. 

9 (b) CREDIT ALLOWED FOR COSTS INCURRED TO

10 CARE FOR PARENTS AND GRANDPARENTS WHO DO NOT

11 LIVE WITH THE TAXPAYER.— 

12 (1) IN GENERAL.—Paragraph (1) of section 

13 21(b) of the Internal Revenue Code of 1986 (relat14 ing to qualifying individual) is amended by striking 

15 ‘‘or’’ at the end of subparagraph (B), by striking the 

16 period at the end of subparagraph (C) and inserting 

17 ‘‘, or’’, and by adding at the end the following new 

18 subparagraph: 

19 ‘‘(D) a dependent of the taxpayer (as de20 fined in section 152, determined without regard 

21 to subsections (b)(1), (b)(2), and (d)(1)(B)) 

22 who is the father or mother of the taxpayer (or 

23 an ancestor of such father or mother) and who 

24 is physically or mentally incapable of caring for 

25 himself or herself.’’. 


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1 (2) CONFORMING AMENDMENT.—Section 

2 21(b)(1)(B) of such Code is amended by inserting 

3 ‘‘(other than a dependent described in subparagraph 

4 (D))’’ after ‘‘and (d)(1)(B))’’. 

5 (c) INFLATION ADJUSTMENT.—Subsection (e) of sec6 tion 21 of such Code is amended by adding at the end 

7 the following new paragraph: 

8 ‘‘(11) INFLATION ADJUSTMENT.— 

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

10 taxable year beginning after 2010, the dollar 

11 amounts in paragraphs (1) and (2) of sub12 section (c) shall each be increased by an 

13 amount equal to— 

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

15 ‘‘(ii) the cost of living adjustment de16 termined under section 1(f)(3) for the cal17 endar year in which the taxable year be18 gins, determined by substituting ‘calendar 

19 year 2009’ for ‘calendar year 1992’ in sub20 paragraph (B) thereof. 

21 ‘‘(B) ROUNDING.—If any amount as ad22 justed under subparagraph (A) is not a multiple 

23 of $1,000, such amount shall be rounded to the 

24 next lowest multiple of $1,000.’’. 


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1 (d) CERTAIN PRIOR AMENDMENTS TO CREDIT MADE

2 PERMANENT.—Section 901 of the Economic Growth and 

3 Tax Relief Reconciliation Act of 2001 shall not apply to 

4 the amendments made by section 204 of such Act. 

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

6 this section shall apply to taxable years beginning after 

7 December 31, 2009. 

Æ 


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