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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Tax Relief for Working 
Caregivers Act of 2009’’. 
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SEC. 2. MODIFICATION OF CREDIT FOR EXPENSES FOR 
HOUSEHOLD AND DEPENDENT CARE SERV-
ICES NECESSARY FOR GAINFUL EMPLOY-
MENT. 
(a) INCREASED
PHASEOUT
THRESHOLD.—Para-
graph (2) of section 21(a) of the Internal Revenue Code 
of 1986 (defining applicable percentage) is amended by 
striking ‘‘$15,000’’ and inserting ‘‘$75,000’’. 
(b) CREDIT ALLOWED
FOR COSTS INCURRED
TO 
CARE FOR PARENTS AND GRANDPARENTS WHO DO NOT 
LIVE WITH THE TAXPAYER.— 
(1) IN
GENERAL.—Paragraph (1) of section 
21(b) of the Internal Revenue Code of 1986 (relat-
ing to qualifying individual) is amended by striking 
‘‘or’’ at the end of subparagraph (B), by striking the 
period at the end of subparagraph (C) and inserting 
‘‘, or’’, and by adding at the end the following new 
subparagraph: 
‘‘(D) a dependent of the taxpayer (as de-
fined in section 152, determined without regard 
to subsections (b)(1), (b)(2), and (d)(1)(B)) 
who is the father or mother of the taxpayer (or 
an ancestor of such father or mother) and who 
is physically or mentally incapable of caring for 
himself or herself.’’. 
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(2) 
CONFORMING
AMENDMENT.—Section 
21(b)(1)(B) of such Code is amended by inserting 
‘‘(other than a dependent described in subparagraph 
(D))’’ after ‘‘and (d)(1)(B))’’. 
(c) INFLATION ADJUSTMENT.—Subsection (e) of sec-
tion 21 of such Code is amended by adding at the end 
the following new paragraph: 
‘‘(11) INFLATION ADJUSTMENT.— 
‘‘(A) IN
GENERAL.—In the case of any 
taxable year beginning after 2010, the dollar 
amounts in paragraphs (1) and (2) of sub-
section (c) shall each be increased by an 
amount equal to— 
‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the cost of living adjustment de-
termined under section 1(f)(3) for the cal-
endar year in which the taxable year be-
gins, determined by substituting ‘calendar 
year 2009’ for ‘calendar year 1992’ in sub-
paragraph (B) thereof. 
‘‘(B) ROUNDING.—If any amount as ad-
justed under subparagraph (A) is not a multiple 
of $1,000, such amount shall be rounded to the 
next lowest multiple of $1,000.’’. 
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(d) CERTAIN PRIOR AMENDMENTS TO CREDIT MADE 
PERMANENT.—Section 901 of the Economic Growth and 
Tax Relief Reconciliation Act of 2001 shall not apply to 
the amendments made by section 204 of such Act. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2009. 
Æ 
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