SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Right Start Child Care 
and Education Act of 2011’’. 
SEC. 2. INCREASE IN EMPLOYER-PROVIDED CHILD CARE 
CREDIT. 
(a) INCREASE
IN CREDITABLE PERCENTAGE
OF 
CHILD CARE EXPENDITURES.—Paragraph (1) of section 
45F(a) of the Internal Revenue Code of 1986 is amended 
by striking ‘‘25 percent’’ and inserting ‘‘35 percent’’. 
(b) INCREASE IN CREDITABLE PERCENTAGE OF RE-
SOURCE AND REFERRAL EXPENDITURES.—Paragraph (2) 
of section 45F(a) of such Code is amended by striking 
‘‘10 percent’’ and inserting ‘‘20 percent’’. 
(c) INCREASE IN MAXIMUM CREDIT.—Subsection (b) 
of section 45F of such Code is amended by striking 
‘‘$150,000’’ and inserting ‘‘$225,000’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2010. 
SEC. 3. INCREASE IN DEPENDENT CARE CREDIT. 
(a) INCREASE
IN INCOMES ELIGIBLE
FOR FULL 
CREDIT.—Paragraph (2) of section 21(a) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘$15,000’’ 
and inserting ‘‘$20,000’’. 
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(b) INCREASE IN PERCENTAGE OF EXPENSES AL-
LOWABLE.—Paragraph (2) of section 21(a) of such Code 
is amended— 
(1) by striking ‘‘35 percent’’ and inserting ‘‘50 
percent’’, and 
(2) by striking ‘‘20 percent’’ and inserting ‘‘35 
percent’’. 
(c) INCREASE IN DOLLAR LIMIT ON AMOUNT CRED-
ITABLE.—Subsection (c) of section 21 of such Code is 
amended— 
(1) by striking ‘‘$3,000’’ in paragraph (1) and 
inserting ‘‘$6,000’’, and 
(2) by striking ‘‘$6,000’’ in paragraph (2) and 
inserting ‘‘$12,000’’. 
(d) CREDIT TO BE REFUNDABLE.— 
(1) IN GENERAL.—Section 21 of such Code is 
hereby moved to subpart C of part IV of subchapter 
A of chapter 1 of such Code (relating to refundable 
credits) and inserted after section 36C. 
(2) TECHNICAL AMENDMENTS.— 
(A) Section 21 of such Code, as so moved, 
is redesignated as section 36D. 
(B) Paragraph (1) of section 36D(a) of 
such Code (as redesignated by paragraph (2)) 
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is amended by striking ‘‘this chapter’’ and in-
serting ‘‘this subtitle’’. 
(C) Paragraph (1) of section 23(f) of such 
Code is amended by striking ‘‘21(e)’’ and in-
serting ‘‘36DA(e)’’. 
(D) Paragraph (6) of section 35(g) of such 
Code is amended by striking ‘‘21(e)’’ and in-
serting ‘‘36D(e)’’. 
(E) Subparagraph (C) of section 129(a)(2) 
of such Code is amended by striking ‘‘section 
21(e)’’ and inserting ‘‘section 36D(e)’’. 
(F) Paragraph (2) of section 129(b) of 
such Code is amended by striking ‘‘section 
21(d)(2)’’ and inserting ‘‘section 36D(d)(2)’’. 
(G) Paragraph (1) of section 129(e) of 
such Code is amended by striking ‘‘section 
21(b)(2)’’ and inserting ‘‘section 36D(b)(2)’’. 
(H) Subsection (e) of section 213 of such 
Code is amended by striking ‘‘section 21’’ and 
inserting ‘‘section 36D’’. 
(I) 
Subparagraph 
(H) 
of 
section 
6213(g)(2) of such Code is amended by striking 
‘‘section 21’’ and inserting ‘‘section 36D’’. 
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(J) 
Subparagraph 
(L) 
of 
section 
6213(g)(2) of such Code is amended by striking 
‘‘section 21,’’ and inserting ‘‘section 36D,’’. 
(K) Paragraph (2) of section 1324(b) of 
title 31, United States Code, is amended by in-
serting ‘‘36D,’’ after ‘‘36C,’’. 
(L) 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 36C 
and inserting the following: 
‘‘Sec. 36D. Expenses for household and dependent care services necessary for 
gainful employment.’’. 
(M) The table of sections for subpart A of 
such part IV is amended by striking the item 
relating to section 21. 
(e) 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. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2010. 
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SEC. 4. THREE-YEAR CREDIT FOR INDIVIDUALS HOLDING 
CHILD CARE-RELATED DEGREES WHO WORK 
IN LICENSED CHILD CARE FACILITIES. 
(a) IN GENERAL.—Subpart A of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after section 25D the fol-
lowing new section: 
‘‘SEC. 25E. RIGHT START CHILD CARE AND EDUCATION 
CREDIT. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in-
dividual who is an eligible child care provider for the tax-
able year, there shall be allowed as a credit against the 
tax imposed by this chapter for the taxable year the 
amount of $2,000. 
‘‘(b) 3-YEAR CREDIT.— 
‘‘(1) IN
GENERAL.—The credit allowable by 
subsection (a) for any taxable year to an individual 
shall be allowed for such year only if the individual 
elects the application of this section for such year. 
‘‘(2) ELECTION.—An election to have this sec-
tion apply may not be made by an individual for any 
taxable year if such an election by such individual is 
in effect for any 3 prior taxable years. 
‘‘(c) ELIGIBLE CHILD CARE PROVIDER.—For pur-
poses of this section— 
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‘‘(1) IN
GENERAL.—The term ‘eligible child 
care provider’ means, for any taxable year, any indi-
vidual if— 
‘‘(A) as of the close of such taxable year, 
such individual holds a bachelor’s degree in 
early childhood education, child care, or a re-
lated degree and such degree was awarded by 
an eligible educational institution (as defined in 
section 25A(f)(2)), and 
‘‘(B) during such taxable year, such indi-
vidual performs at least 1,200 hours of child 
care services at a facility if— 
‘‘(i) the principal use of the facility is 
to provide child care services, 
‘‘(ii) no more than 25 percent of the 
children receiving child care services at the 
facility are children (as defined in section 
152(f)) of the individual or such individ-
ual’s spouse, and 
‘‘(iii) the facility meets the require-
ments of all applicable laws and regula-
tions of the State or local government in 
which it is located, including the licensing 
of the facility as a child care facility. 
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