I 
110TH CONGRESS 
1ST SESSION H. R. 1871 
To amend the Internal Revenue Code of 1986 to increase, expand the avail-
ability of, and repeal the sunset with respect to, the dependent care 
tax credit. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 17, 2007 
Mrs. GILLIBRAND (for herself, Mrs. BONO, Mr. HIGGINS, Mr. MCNERNEY, 
Mrs. BOYDA of Kansas, Mr. RUPPERSBERGER, Mr. BISHOP of Georgia, 
Mr. BARROW, Mr. PETERSON of Minnesota, Mr. LINCOLN DAVIS of Ten-
nessee, Mr. PATRICK J. MURPHY of Pennsylvania, Mr. ARCURI, Mr. BOS-
WELL, Mr. SHULER, Mr. ELLSWORTH, Mr. ALTMIRE, Mr. WILSON of 
Ohio, Mr. CARNEY, Mr. MCNULTY, Ms. SHEA-PORTER, Ms. SUTTON, Mr. 
MAHONEY of Florida, Ms. HARMAN, Ms. CASTOR, Mr. WALZ of Min-
nesota, Ms. CLARKE, Mr. HARE, Mr. ISRAEL, Mr. CROWLEY, Mr. HIN-
CHEY, Mr. DONNELLY, Mr. YARMUTH, Mr. LOEBSACK, Ms. HIRONO, Mr. 
PERLMUTTER, Mr. COURTNEY, and Mr. JOHNSON of Georgia) 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 increase, 
expand the availability of, and repeal the sunset with 
respect to, the dependent care tax credit. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Family Care Act of 
2007’’. 
SEC. 2. INCREASE AND INFLATION ADJUSTMENT FOR DE-
PENDENT CARE CREDIT. 
(a) IN GENERAL.— 
(1) INCREASE.—Paragraph (2) of section 21(a) 
of the Internal Revenue Code of 1986 (relating to 
expenses for household and dependent care services 
necessary for gainful employment) is amended to 
read as follows: 
‘‘(2) APPLICABLE
PERCENTAGE.—The term 
‘applicable percentage’ means— 
‘‘(A) 40 percent in the case of a taxpayer 
whose adjusted gross income is $100,000 or 
less, and 
‘‘(B) 20 percent in the case of any other 
taxpayer.’’. 
(2) INFLATION
ADJUSTMENT.—Section 21 of 
such Code is amended by redesignating subsection 
(f) as subsection (g) and by inserting after sub-
section (e) the following new subsection: 
‘‘(f) COST-OF-LIVING ADJUSTMENT.—In the case of 
any taxable year beginning in a calendar year after 2007, 
the $100,000 amount contained in subsection (a)(2)(A) 
shall be increased by an amount equal to— 
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‘‘(1) such dollar amount, multiplied by 
‘‘(2) 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 2006’ for ‘calendar year 1992’ in sub-
paragraph (B) thereof. 
Any increase determined under the preceding sentence 
shall be rounded to the nearest multiple of $1,000.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2006. 
SEC. 3. INCREASE IN DEPENDENT CARE CREDIT MADE 
PERMANENT. 
Section 901 of the Economic Growth and Tax Relief 
Reconciliation Act of 2001 shall not apply to the amend-
ments made by section 204 of such Act (relating to de-
pendent care credit). 
Æ 
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