I
106TH CONGRESS
2D SESSION
H. R. 5602
To amend the Internal Revenue Code of 1986 to allow a refundable credit
to grandparents who provide primary child care services without com-
pensation for their grandchildren who are not their dependents.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 30, 2000
Ms. DELAURO (for herself and Mr. MALONEY of Connecticut) 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 allow a
refundable credit to grandparents who provide primary
child care services without compensation for their grand-
children who are not their dependents.
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 ‘‘Grandchild Care Tax
Relief Act of 2000’’.
SEC. 2. REFUNDABLE CREDIT TO GRANDPARENTS PRO-
VIDING PRIMARY CHILD CARE FOR GRAND-
CHILDREN NOT THEIR DEPENDENTS.
(a) IN GENERAL.—Subpart C of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 (relating to refundable credits) is amended by redes-
ignating section 35 as section 36 and by inserting after
section 34 the following new section:
‘‘SEC. 35. GRANDPARENTS PROVIDING PRIMARY CHILD
CARE FOR GRANDCHILDREN WHO ARE NOT
THEIR DEPENDENTS.
‘‘(a) IN GENERAL.—In the case of an individual,
there shall be allowed as a credit against the tax imposed
by this chapter for the taxable year an amount equal to
$500 with respect to each qualifying grandchild for whom
the taxpayer or the spouse of the taxpayer provides, with-
out compensation, primary child care services during the
taxable year.
‘‘(b) QUALIFYING GRANDCHILD.—For purposes of
this section, the term ‘qualifying grandchild’ means any
individual—
‘‘(1) with respect to whom the taxpayer is not
allowed a deduction under section 151 with respect
to such individual for the taxable year,
‘‘(2) who has not attained the age of 16 as of
the close of the calendar year in which the taxable
year of the taxpayer begins, and
‘‘(3) who is a descendent of a son, daughter,
stepson, or stepdaughter of the taxpayer or is a fos-
ter child of such a descendent, son, daughter, step-
son, stepdaughter.
For purposes of paragraph (3), the term ‘foster child’
means a child who is placed by an authorized placement
agency.
‘‘(c) PRIMARY CHILD CARE SERVICES.—For pur-
poses of this section, an individual provides primary child
care services for a taxable year if the individual provides
such services for not less than 30 hours per week for 48
weeks of the taxable year.
‘‘(d) SPECIAL
RULES.—For purposes of this
section—
‘‘(1) 
DECEASED
SPOUSE
OR
FORMER
SPOUSE.—In the case of a taxpayer whose spouse is
deceased or is a former spouse of the taxpayer, sub-
section (b)(3) shall be applied by substituting ‘or de-
ceased or former spouse of the taxpayer’ after ‘tax-
payer’ each place it occurs.
‘‘(2) 
IDENTIFICATION
REQUIREMENT.—No
credit shall be allowed under this section to a tax-
payer with respect to any qualifying grandchild un-
less the taxpayer includes the name and taxpayer
identification number of such qualifying grandchild
on the return of tax for the taxable year.
‘‘(3) TAXABLE YEAR MUST BE FULL TAXABLE
YEAR.—Except in the case of a taxable year closed
by reason of the death of the taxpayer, no credit
shall be allowable under this section in the case of
a taxable year covering a period of less than 12
months.’’.
(b) CONFORMING AMENDMENTS.—
(1) Paragraph (2) of section 1324(b) of title
31, United States Code, is amended by inserting be-
fore the period ‘‘, or from section 35 of such Code’’.
(2) The table of sections for subpart C of part
IV of subchapter A of chapter 1 of the Internal Rev-
enue Code of 1986 is amended by striking the last
item and inserting the following new items:
‘‘Sec. 35. Grandparents providing primary child care for grand-
children who are not their dependents.
‘‘Sec. 36. Overpayments of tax.’’.
(c) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by
this section shall apply to taxable years beginning
with or after the taxable year with respect to which
the conditions specified in paragraph (2) are satis-
fied.
(2) TRIGGER
MECHANISM.—The conditions
specified in this paragraph are the following:
(A) The credit under section 21 of the In-
ternal Revenue Code of 1986 (relating to ex-
penses for household and dependent care serv-
ices necessary for gainful employment)—
(i) is refundable,
(ii) is available at a maximum level to
those with an adjusted gross income limit
of not less than $30,000 per year, indexed
for inflation,
(iii) is available at a minimal level to
those with an adjusted gross income of not
less than $60,000 per year, indexed for in-
flation, and
(iv) is available to parents of infants
ages 0-12 months without regard to out-of-
pocket child care expenses of the parents.
(B) The maximum amount of employment-
related expenses that can be taken into account
under section 21 of such Code is indexed for in-
flation.