‘‘(ii) the requirements of subpara-
graph (B) are met. 
‘‘(D) DEPENDENT
CARE
CENTER
DE-
FINED.—For purposes of this paragraph, the 
term ‘dependent care center’ means any facility 
which— 
‘‘(i) provides care for more than six 
individuals (other than individuals who re-
side at the facility), and 
‘‘(ii) receives a fee, payment, or grant 
for providing services for any of the indi-
viduals (regardless of whether such facility 
is operated for profit). 
‘‘(c) DOLLAR LIMIT ON AMOUNT CREDITABLE.—The 
amount of the employment-related expenses incurred dur-
ing any taxable year which may be taken into account 
under subsection (a) shall not exceed— 
‘‘(1) $3,000 if there is 1 qualifying individual 
with respect to the taxpayer for such taxable year, 
or 
‘‘(2) $6,000 if there are 2 or more qualifying 
individuals with respect to the taxpayer for such tax-
able year. 
The amount determined under paragraph (1) or (2) 
(whichever is applicable) shall be reduced by the aggregate 
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amount excludable from gross income under section 129 
for the taxable year. 
‘‘(d) EARNED INCOME LIMITATION.—Except as oth-
erwise provided in this subsection, the amount of the em-
ployment-related expenses incurred during any taxable 
year which may be taken into account under subsection 
(a) shall not exceed— 
‘‘(1) in the case of an individual who is not 
married at the close of such year, such individual’s 
earned income for such year, or 
‘‘(2) in the case of an individual who is married 
at the close of such year, the lesser of such individ-
ual’s earned income or the earned income of his 
spouse for such year. 
‘‘(e) SPECIAL RULES.—For purposes of this sec-
tion— 
‘‘(1) PLACE
OF
ABODE.—An individual shall 
not be treated as having the same principal place of 
abode of the taxpayer if at any time during the tax-
able year of the taxpayer the relationship between 
the individual and the taxpayer is in violation of 
local law. 
‘‘(2) MARRIED COUPLES MUST FILE JOINT RE-
TURN.—If the taxpayer is married at the close of 
the taxable year, the credit shall be allowed under 
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subsection (a) only if the taxpayer and his spouse 
file a joint return for the taxable year. 
‘‘(3) MARITAL STATUS.—An individual legally 
separated from his spouse under a decree of divorce 
or of separate maintenance shall not be considered 
as married. 
‘‘(4) CERTAIN
MARRIED
INDIVIDUALS
LIVING 
APART.—If— 
‘‘(A) an individual who is married and who 
files a separate return— 
‘‘(i) maintains as his home a house-
hold which constitutes for more than one- 
half of the taxable year the principal place 
of abode of a qualifying individual, and 
‘‘(ii) furnishes over half of the cost of 
maintaining such household during the 
taxable year, and 
‘‘(B) during the last 6 months of such tax-
able year such individual’s spouse is not a mem-
ber of such household, such individual shall not 
be considered as married. 
‘‘(5) PAYMENTS TO RELATED INDIVIDUALS.— 
No credit shall be allowed under subsection (a) for 
any amount paid by the taxpayer to an individual— 
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‘‘(A) with respect to whom, for the taxable 
year, a deduction under section 151(c) (relating 
to deduction for personal exemptions for de-
pendents) is allowable either to the taxpayer or 
his spouse, or 
‘‘(B) who is a child of the taxpayer (within 
the meaning of section 152(f)(1)) who has not 
attained the age of 19 at the close of the tax-
able year. For purposes of this paragraph, the 
term ‘taxable year’ means the taxable year of 
the taxpayer in which the service is performed. 
‘‘(6) IDENTIFYING
INFORMATION
REQUIRED 
WITH RESPECT TO SERVICE PROVIDER.—No credit 
shall be allowed under subsection (a) for any amount 
paid to any person unless— 
‘‘(A) the name, address, and taxpayer 
identification number of such person are in-
cluded on the return claiming the credit, or 
‘‘(B) if such person is an organization de-
scribed in section 501(c)(3) and exempt from 
tax under section 501(a), the name and address 
of such person are included on the return 
claiming the credit. 
In the case of a failure to provide the information 
required under the preceding sentence, the preceding 
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sentence shall not apply if it is shown that the tax-
payer exercised due diligence in attempting to pro-
vide the information so required. 
‘‘(7) IDENTIFYING
INFORMATION
REQUIRED 
WITH RESPECT TO QUALIFYING INDIVIDUALS.—No 
credit shall be allowed under this section with re-
spect to any qualifying individual unless the TIN of 
such individual is included on the return claiming 
the credit. 
‘‘(f) REGULATIONS.—The Secretary shall prescribe 
such regulations as may be necessary to carry out the pur-
poses of this section.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by add-
ing at the end the following new item: 
‘‘Sec. 25E. Expenses for household and elder care services necessary for gainful 
employment.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
Æ 
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