Child CARE Act

To amend the Internal Revenue Code of 1986 to make the credit for dependent care expenses refundable and to index the income phaseout of the credit for inflation. 1. Short title This Act may be cited as the Child Care Access and Refundability Expansion Act Child CARE Act 2. Credit for dependent care expenses (a) Credit made refundable (1) In general The Internal Revenue Code of 1986 is amended by redesignating section 21 as section 36C and by moving such section after section 36B. (2) Credit not allowed to nonresident aliens Section 36C(a)(1) (other than a nonresident alien) In the case of an individual (3) Conforming amendments (A) Section 23(f)(1) of such Code is amended by striking section 21(e) section 36C(e) (B) Section 35(g)(6) of such Code is amended by striking section 21(e) section 36C(e) (C) Section 36C(a)(1) of such Code, as redesignated by this section, is amended by striking this chapter this subtitle (D) Section 129(a)(2)(C) of such Code is amended by striking section 21(e) section 36C(e) (E) Section 129(b)(2) of such Code is amended by striking section 21(d)(2) section 36C(d)(2) (F) Section 129(e)(1) of such Code is amended by striking section 21(b)(2) section 36C(b)(2) (G) Section 213(e) of such Code is amended by striking section 21 section 36C (H) Section 6211(b)(4)(A) of such Code is amended by inserting 36C, 36B, (I) Section 6213(g)(2)(H) of such Code is amended by striking section 21 section 36C (J) Section 6213(g)(2)(L) of such Code is amended by striking section 21, 24, 32, or 6428 section 24, 32, 36C, or 6428 (K) Paragraph (2) of section 1324(b) 36C, 36B, (L) The table of sections for subpart A of part IV of subchapter A of chapter 1 section 21 (M) The table of sections for subpart C of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 36B the following new item: Sec. 36C. Expenses for household and dependent care services necessary for gainful employment. . (b) Inflation adjustment of income thresholds for credit phasedown Section 36C(e) (11) Inflation adjustment (A) In general In the case of any taxable year beginning in a calendar year after 2013, the $2,000 amount and the $15,000 amount in subsection (a)(2) shall each be increased by an amount equal to— (i) such dollar amount, multiplied by (ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2012 calendar year 1992 (B) Rounding Any increase determined under subparagraph (A) shall be rounded to the nearest multiple of— (i) in the case of the $2,000 amount, $50, and (ii) in the case of the $15,000 amount, $100. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2013.

Summary: Child Care Access and Refundability Expansion Act or the Child CARE Act - Amends the Internal Revenue Code, with respect to the tax credit for dependent care expenses, to: (1) make such credit refundable, (2) deny such credit to nonresident aliens, and (3) allow an annual cost-of-living adjustment after 2013 to the amounts used to determine an income-based reduction in the amount of such credit.