I 
114TH CONGRESS 
2D SESSION 
H. R. 5828 
To amend the Internal Revenue Code of 1986 to provide a high quality 
child care tax credit, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 14, 2016 
Ms. CLARK of Massachusetts (for herself, Ms. LINDA T. SA´NCHEZ of Cali-
fornia, Ms. NORTON, and Mr. HONDA) 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 provide 
a high quality child care tax credit, and for other purposes. 
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 ‘‘21st Century Child 
Care Investment Act’’. 
SEC. 2. HIGH QUALITY CHILD CARE TAX CREDIT. 
(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 before section 26 the fol-
lowing new section: 
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‘‘SEC. 25E. HIGH QUALITY CHILD CARE CREDIT. 
‘‘(a) IN GENERAL.—In the case of an individual who 
elects the application of this section for the taxable year, 
there shall be allowed as a credit against the tax imposed 
by this chapter an amount equal to the applicable amount 
of high quality child care expenses paid by such individual 
during the taxable year with respect to a qualifying child. 
‘‘(b) LIMITATION.— 
‘‘(1) IN GENERAL.—The amount of the high 
quality child care expenses which may be taken into 
account under subsection (a) with respect to each 
qualifying child of the taxpayer shall not exceed— 
‘‘(A) $14,000 for each qualifying child who 
has not attained the age of 3 by the end of the 
taxable year, and 
‘‘(B) $5,000 for each qualifying child who 
has attained the age of 3 by the end of the tax-
able year. 
‘‘(2) ADJUSTED GROSS INCOME LIMITATION.— 
The dollar limitation under paragraph (1)— 
‘‘(A) shall be zero under subparagraph (A) 
thereof in the case of a taxpayer whose adjusted 
gross income for the taxable year exceeds an 
amount equal to 400 percent of the poverty 
line, and 
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‘‘(B) shall be zero under subparagraph (B) 
thereof in the case of a taxpayer whose adjusted 
gross income for the taxable year exceeds an 
amount equal to 200 percent of the poverty 
line. 
‘‘(c) PORTION OF CREDIT REFUNDABLE.— 
‘‘(1) IN GENERAL.—The aggregate credits al-
lowed to a taxpayer under subpart C shall be in-
creased by the difference of— 
‘‘(A) the credit which would be allowed 
under this section without regard to this sub-
section and the limitation under section 26(a), 
over 
‘‘(B) the taxpayer’s applicable family con-
tribution. 
The amount of the credit allowed under this sub-
section shall not be treated as a credit allowed under 
this subpart and shall reduce the amount of credit 
otherwise allowable under subsection (a) without re-
gard to section 26(a). 
‘‘(2) APPLICABLE
FAMILY
CONTRIBUTION.— 
For purposes of this subsection— 
‘‘(A) IN GENERAL.—The taxpayer’s appli-
cable family contribution for a taxable year 
shall be the sum of the amounts determined 
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under subparagraph (B) with respect to each 
qualifying child of the taxpayer for which high 
quality child care expenses are taken into ac-
count under this section for the taxable year. 
‘‘(B) 
AMOUNTS
DETERMINED.—The 
amount with respect to a qualifying child under 
this subparagraph shall be determined as fol-
lows: 
‘‘(i) In the case of a qualifying child 
who has not attained age 3: 
‘‘If the taxpayer’s adjusted 
gross income for the 
taxable year is the following 
Multiply such adjusted 
percentage of the poverty line: 
gross income by: 
Not more than 133 percent ..............................................
2 percent
More than 133 percent but not more than 150 percent 
6 percent
More than 150 percent but not more than 200 percent 
8 percent
More than 200 percent but not more than 250 percent 
10 percent
More than 250 percent .....................................................
12 percent. 
‘‘(ii) In the case of a qualifying child 
who has attained age 3: 
‘‘If the taxpayer’s adjusted 
gross income for the 
taxable year is the following 
Multiply such adjusted 
percentage of the poverty line: 
gross income by: 
Not more than 133 percent ..............................................
2 percent
More than 133 percent but not more than 150 percent 
6 percent
More than 150 percent but not more than 200 percent 
8 percent. 
‘‘(d) DEFINITIONS.—For purposes of this section— 
‘‘(1) QUALIFYING CHILD.—The term ‘qualifying 
child’ means a dependent of the taxpayer (as defined 
in section 152(a)(1)) who has not attained age 5. 
‘‘(2) HIGH QUALITY CHILD CARE EXPENSES.— 
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