I 
115TH CONGRESS 
1ST SESSION H. R. 2238 
To amend the Internal Revenue Code of 1986 to enhance the Child and 
Dependent Care Tax Credit and make the credit fully refundable. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 28, 2017 
Mrs. DEMINGS 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 enhance 
the Child and Dependent Care Tax Credit and make 
the credit fully refundable. 
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 ‘‘Child and Dependent 
Care Tax Credit Improvement Act of 2017’’. 
SEC. 2. ENHANCEMENT OF CHILD AND DEPENDENT CARE 
TAX CREDIT. 
(a) IN GENERAL.—Paragraph (2) of section 21(a) of 
the Internal Revenue Code of 1986 is amended to read 
as follows: 
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‘‘(2) APPLICABLE PERCENTAGE.—For purposes 
of paragraph (1), the term ‘applicable percentage’ 
means 50 percent reduced (but not below 20 per-
cent) by 1 percentage point for each $2,000 (or frac-
tion thereof) by which the taxpayer’s adjusted gross 
income for the taxable year exceeds $126,000.’’. 
(b) INCREASE IN DOLLAR LIMIT ON AMOUNT CRED-
ITABLE.—Subsection (c) of section 21 of such Code is 
amended— 
(1) in paragraph (1), by striking ‘‘$3,000’’ and 
inserting ‘‘$8,000’’; and 
(2) in paragraph (2), by striking ‘‘$6,000’’ and 
inserting ‘‘$16,000’’. 
(c) ADJUSTMENT FOR INFLATION.—Section 21 of 
such Code is amended— 
(1) by redesignating subsection (f) as sub-
section (g); and 
(2) by inserting after subsection (e) the fol-
lowing new subsection: 
‘‘(f) INFLATION ADJUSTMENT.— 
‘‘(1) IN GENERAL.—In the case of a calendar 
year beginning after 2018, the $126,000 amount in 
paragraph (2) of subsection (a) and the dollar 
amounts in subsection (c) shall each be increased by 
an amount equal to— 
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‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar 
year in which the taxable year begins, deter-
mined by substituting ‘calendar year 2017’ for 
‘calendar year 1992’ in subparagraph (B) 
thereof. 
‘‘(2) ROUNDING.—If any dollar amount, after 
being increased under paragraph (1), is not a mul-
tiple of $100, such dollar amount shall be rounded 
to the next lowest multiple of $100.’’. 
(d) CREDIT TO BE REFUNDABLE.— 
(1) IN GENERAL.—The Internal Revenue Code 
of 1986 is amended— 
(A) by redesignating section 21 as section 
36C; and 
(B) by moving section 36C, as so redesig-
nated, from subpart A of part IV of subchapter 
A of chapter 1 to the location immediately be-
fore section 37 in subpart C of part IV of sub-
chapter A of chapter 1. 
(2) TECHNICAL AMENDMENTS.— 
(A) Paragraph (1) of section 23(f) of the 
Internal Revenue Code of 1986 is amended by 
striking ‘‘21(e)’’ and inserting ‘‘36C(e)’’. 
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(B) Paragraph (6) of section 35(g) of such 
Code is amended by striking ‘‘21(e)’’ and in-
serting ‘‘36C(e)’’. 
(C) Paragraph (1) of section 36C(a) of 
such Code (as redesignated by paragraph (1)) 
is amended by striking ‘‘this chapter’’ and in-
serting ‘‘this subtitle’’. 
(D) Subparagraph (C) of section 129(a)(2) 
of such Code is amended by striking ‘‘section 
21(e)’’ and inserting ‘‘section 36C(e)’’. 
(E) Paragraph (2) of section 129(b) of 
such Code is amended by striking ‘‘section 
21(d)(2)’’ and inserting ‘‘section 36C(d)(2)’’. 
(F) Paragraph (1) of section 129(e) of 
such Code is amended by striking ‘‘section 
21(b)(2)’’ and inserting ‘‘section 36C(b)(2)’’. 
(G) Subsection (e) of section 213 of such 
Code is amended by striking ‘‘section 21’’ and 
inserting ‘‘section 36C’’. 
(H) 
Subparagraph 
(H) 
of 
section 
6213(g)(2) of such Code is amended by striking 
‘‘section 21’’ and inserting ‘‘section 36C’’. 
(I) 
Subparagraph 
(L) 
of 
section 
6213(g)(2) of such Code is amended by striking 
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‘‘section 21, 24, or 32,’’ and inserting ‘‘section 
24, 32, or 36C,’’. 
(J) Paragraph (2) of section 1324(b) of 
title 31, United States Code, is amended by in-
serting ‘‘36C,’’ after ‘‘36B,’’. 
(K) The table of sections for subpart C of 
part IV of subchapter A of chapter 1 of the In-
ternal Revenue Code of 1986 is amended by in-
serting after the item relating to section 36B 
the following: 
‘‘Sec. 36C. Expenses for household and dependent care services necessary for 
gainful employment.’’. 
(L) The table of sections for subpart A of 
such part IV is amended by striking the item 
relating to section 21. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2017. 
Æ 
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