I
106TH CONGRESS
1ST SESSION
H. R. 847
To amend the Internal Revenue Code of 1986 to make the dependent care
tax credit refundable and to increase the amount of allowable dependent
care expenses.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 24, 1999
Mr. WEYGAND (for himself and Mr. SHOWS) 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 make
the dependent care tax credit refundable and to increase
the amount of allowable dependent care expenses.
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 ‘‘Care Givers Tax Re-
duction Act of 1999’’.
SEC. 2. DEPENDENT CARE TAX CREDIT.
(a) MAKING CREDIT REFUNDABLE.—Part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 is amended—
(1) in subpart C (relating to refundable credits)
by redesignating section 35 as section 36, and
(2) by moving section 21 to subpart C, insert-
ing it after section 34, and redesignating it as sec-
tion 35.
(b) INCREASE
IN ALLOWABLE EXPENSES.—Sub-
section (c) of section 35 of such Code (as redesignated
by subsection (a) of this section) is amended—
(1) in paragraph (1) by striking ‘‘$2,400’’ and
inserting ‘‘$4,000’’, and
(2) in paragraph (2) by striking ‘‘$4,800’’ and
inserting ‘‘$8,000’’.
(c) CHANGE IN PHASEDOWN.—Paragraph (2) of sec-
tion 35(a) of such Code (as redesignated by subsection
(a) of this section) is amended to read as follows:
‘‘(2) APPLICABLE PERCENTAGE DEFINED.—For
purposes of paragraph (1), the term ‘applicable per-
centage’ means 30 percent reduced (but not below
12 percent) by 1 percentage point for each $3,000
(or fraction thereof) by which the taxpayer’s ad-
justed gross income for the taxable year exceeds
$18,000.’’
(d) INFLATION ADJUSTMENT.—Section 35 of such
Code (as redesignated by subsection (a) of this section)
is amended by redesignating subsection (f) as subsection
(g) and by adding after subsection (e) the following new
subsection:
‘‘(f) INFLATION ADJUSTMENT.—
‘‘(1) IN GENERAL.—In the case of a taxable
year beginning after 1999, each of the dollar
amounts in subsection (c) shall be increased by an
amount equal to—
‘‘(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 1998’’ for
‘‘calendar year 1992’’ in subparagraph (B)
thereof.
‘‘(2) ROUNDING.—If any amount as adjusted
under paragraph (1) is not a multiple of $50, such
amount shall be rounded to the next lowest multiple
of $50.’’.
(e) CONFORMING AMENDMENTS.—
(1) Section 23(f)(1) of such Code is amended
by striking ‘‘section 21(e)’’ and inserting ‘‘section
35(e)’’.
(2) Section 129 of such Code is amended—
(A) in subsection (a)(2)(C) by striking
‘‘section 21(e)’’ and inserting ‘‘section 35(e)’’,
(B) in subsection (b)(2) by striking ‘‘sec-
tion 21(d)(2)’’ and inserting ‘‘section 35(d)(2)’’,
and
(C) in subsection (e)(1) by striking ‘‘sec-
tion 21(b)(2)’’ and inserting ‘‘section 35(b)(2)’’.
(3) Section 213(e) of such Code is amended by
striking ‘‘section 21’’ and inserting ‘‘section 35’’.
(4) Subparagraphs (H) and (L) of section
6213(g)(2) of such Code are each amended by strik-
ing ‘‘section 21’’ and inserting ‘‘section 35’’.
(f) CLERICAL AMENDMENTS.—
(1) The table of sections for subpart A of part
IV of subchapter A of chapter 1 of such Code (relat-
ing to refundable credits) is amended by striking the
item relating to section 21.
(2) The table of sections for subpart C of part
IV of subchapter A of chapter 1 of such Code (relat-
ing to refundable credits) is amended by striking the
item relating to section 35 and inserting the follow-
ing new items:
‘‘Sec. 35. Expenses for household and dependent services nec-
essary for gainful employment.
‘‘Sec. 36. Overpayments of tax.’’
(g) EFFECTIVE DATE.—The amendments made by
this section shall apply to expenses incurred after Decem-
ber 31, 1999.
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