Helping Working Families Afford Child Care Act

To amend the Internal Revenue Code of 1986 to enhance the dependent care tax credit, and for other purposes. 1. Short title This Act may be cited as the Helping Working Families Afford Child Care Act 2. Enhancement of the dependent care tax credit (a) Increase in dependent care tax credit (1) Increase in incomes eligible for full credit Paragraph (2) of section 21(a) (2) Applicable percentage defined For purposes of paragraph (1), the term applicable percentage . (2) Increase in dollar limit on amount creditable Subsection (c) of section 21 (A) by striking $3,000 $8,000 (B) by striking $6,000 $16,000 (3) Inflation adjustment Section 21 (A) by redesignating subsection (f) as subsection (g), and (B) by inserting after subsection (e) the following new subsection: (f) Inflation adjustment (1) In general In the case of any taxable year beginning after 2016, the $110,000 amount in subsection (a)(2) and each of the dollar amounts in subsection (c) shall each be increased by an amount equal to— (A) such dollar amount, multiplied by (B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, by substituting 2015 1992 (2) Rounding The amount of any increase under paragraph (1) shall be rounded— (A) for purposes of the dollar amount in subsection (a)(2), the nearest multiple of $1,000, and (B) for purposes of the dollar amounts in subsection (c), the nearest multiple of $100. . (b) Dependent care tax credit To be refundable (1) In general The Internal Revenue Code of 1986 is amended— (A) by redesignating section 21, as amended by subsection (a), as section 36C, and (B) by moving section 36C, as so redesignated, from subpart A of part IV of subchapter A of chapter 1 to the location immediately before section 37 in subpart C of part IV of subchapter A of chapter 1. (2) Technical amendments (A) Paragraph (1) of section 23(f) 21(e) 36C(e) (B) Paragraph (6) of section 35(g) of such Code is amended by striking 21(e) 36C(e) (C) Paragraph (1) of section 36C(a) of such Code (as redesignated by paragraph (1)) is amended by striking this chapter this subtitle (D) Subparagraph (C) of section 129(a)(2) of such Code is amended by striking section 21(e) section 36C(e) (E) Paragraph (2) of section 129(b) of such Code is amended by striking section 21(d)(2) section 36C(d)(2) (F) Paragraph (1) of section 129(e) of such Code is amended by striking section 21(b)(2) section 36C(b)(2) (G) Subsection (e) of section 213 of such Code is amended by striking section 21 section 36C (H) Subparagraph (A) of section 6211(b)(4) of such Code is amended by inserting 36C, 36B, (I) Subparagraph (H) of section 6213(g)(2) of such Code is amended by striking section 21 section 36C (J) Subparagraph (L) of section 6213(g)(2) of such Code is amended by striking section 21, 24, 32, section 24, 32, 36C, (K) Paragraph (2) of section 1324(b) of title 31, United States Code, is amended by inserting 36C, 36B, (L) The table of sections for subpart C of part IV of subchapter A of chapter 1 Sec. 36C. Expenses for household and dependent care services necessary for gainful employment. . (M) The table of sections for subpart A of such part IV of such Code is amended by striking the item relating to section 21. (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2015.

Summary: Helping Working Families Afford Child Care Act Amends the Internal Revenue Code, with respect to the tax credit for employment-related expenses incurred for the care of a taxpayer's dependent, to: (1) increase to $110,000, the adjusted gross income threshold level above which such credit is incrementally reduced; (2) increase the dollar limit on the allowable amount of such credit; (3) allow an inflation adjustment to the threshold amount and the maximum credit amounts, beginning after 2016; and (4) make such credit refundable.