I 
110TH CONGRESS 
1ST SESSION H. R. 4164 
To amend the Internal Revenue Code of 1986 to allow a deduction for 
expenses paid for household and dependent care services necessary for 
gainful employment and to increase, and make refundable, the credit 
for such expenses. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 13, 2007 
Mrs. MALONEY of New York (for herself, Ms. CLARKE, Ms. VELA´ZQUEZ, Mr. 
ELLISON, and Ms. HIRONO) introduced the following bill; which was re-
ferred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to allow a 
deduction for expenses paid for household and dependent 
care services necessary for gainful employment and to 
increase, and make refundable, the credit for such ex-
penses. 
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 ‘‘Child Care Afford-
ability Act of 2007’’. 
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SEC. 2. ALLOWANCE OF DEDUCTION FOR EXPENSES FOR 
HOUSEHOLD AND DEPENDENT CARE SERV-
ICES NECESSARY FOR GAINFUL EMPLOY-
MENT. 
(a) IN GENERAL.—Part VII of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 (relating to 
additional itemized deductions for individuals) is amended 
by redesignating section 224 as section 225 and inserting 
after section 223 the following new section: 
‘‘SEC. 224. EXPENSES FOR HOUSEHOLD AND DEPENDENT 
CARE SERVICES NECESSARY FOR GAINFUL 
EMPLOYMENT. 
‘‘(a) ALLOWANCE OF DEDUCTION.—In the case of an 
individual for whom there are 1 or more qualifying individ-
uals with respect to such individual, there shall be allowed 
as a deduction an amount equal to so much of the employ-
ment-related expenses paid by such individual during the 
taxable year as do not exceed— 
‘‘(1) $13,000 if there is 1 qualifying individual 
with respect to the taxpayer for such taxable year, 
or 
‘‘(2) 200 percent of the dollar amount in effect 
under paragraph (1) for the taxable year if there are 
2 or more qualifying individuals with respect to the 
taxpayer for such taxable year. 
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‘‘(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 2007’ for 
‘calendar year 1992’ in subparagraph (B) 
thereof. 
‘‘(2) ROUNDING.—If any amount as adjusted 
under subparagraph (A) is not a multiple of $100, 
such amount shall be rounded to the next lowest 
multiple of $100. 
‘‘(d) REGULATIONS.—The Secretary shall prescribe 
such regulations as may be necessary to carry out the pur-
poses of this section.’’. 
(b) DEDUCTIBLE WHETHER
OR NOT TAXPAYER 
ITEMIZES.—Subsection (a) of section 62 of such Code (de-
fining adjusted gross income) is amended by inserting 
after paragraph (21) the following new paragraph: 
‘‘(22) EXPENSES
FOR
HOUSEHOLD
AND
DE-
PENDENT CARE SERVICES NECESSARY FOR GAINFUL 
EMPLOYMENT.—The deduction allowed by section 
224.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Subsection (e) of section 213 is amended by 
inserting ‘‘or deduction under section 224’’ after 
‘‘section 21’’. 
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(2) Paragraph (2) of section 6213(g) is amend-
ed— 
(A) by striking ‘‘or’’ in subparagraph (H) 
and inserting ‘‘, section 224 (relating to ex-
penses for household and dependent care serv-
ices necessary for gainful employment), or’’, 
and 
(B) by striking ‘‘or 32’’ in subparagraph 
(L) and inserting ‘‘32, or 224’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to expenses paid in taxable years 
beginning after the date of the enactment of this Act. 
SEC. 3. MODIFICATION OF CREDIT FOR EXPENSES FOR 
HOUSEHOLD AND DEPENDENT CARE SERV-
ICES NECESSARY FOR GAINFUL EMPLOY-
MENT. 
(a) IN GENERAL.— 
(1) INCREASE
IN
CREDIT
LIMITATION.—Sub-
section (c) of section 21 of the Internal Revenue 
Code of 1986 (relating to dollar limit on amount 
creditable) is amended— 
(A) by striking ‘‘$3,000’’ in paragraph (1) 
and inserting ‘‘13,000’’, and 
(B) by striking ‘‘$6,000’’ in paragraph (2) 
and inserting ‘‘200 percent of the dollar 
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amount in effect under paragraph (1) for the 
taxable year’’. 
(2) INFLATION
ADJUSTMENT.—Section 21 of 
such Code is amended by redesignating subsection 
(f) as subsection (g) and inserting after subsection 
(e) the following new subsection: 
‘‘(f) INFLATION ADJUSTMENT.— 
‘‘(1) IN GENERAL.—In the case of a taxable 
year beginning after 2008, the dollar amount under 
subsection (a)(1) 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 2007’ for 
‘calendar year 1992’ in subparagraph (B) 
thereof. 
‘‘(2) ROUNDING.—If any amount as adjusted 
under subparagraph (A) is not a multiple of $100, 
such amount shall be rounded to the next lowest 
multiple of $100.’’. 
(3) INCREASE
IN
DEEMED
EARNED
INCOME 
AMOUNTS.—Paragraph (2) of section 21(d) of such 
Code (relating to special rules for spouse who is a 
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student or incapable of caring for himself) is amend-
ed— 
(A) by striking ‘‘$250 if subsection (c)(1)’’ 
in subparagraph (A) and inserting ‘‘1⁄12 of the 
amount in effect under subsection (c)(1) if such 
subsection’’, and 
(B) by striking ‘‘$500 if subsection (c)(2)’’ 
in subparagraph (B) and inserting ‘‘1⁄12 of the 
amount in effect under subsection (c)(2) if such 
subsection’’. 
(b) COORDINATION WITH DEDUCTION FOR EMPLOY-
MENT-RELATED EXPENSES.—Subsection (e) of section 21 
of such Code (relating to special rules) is amended by add-
ing at the end the following new paragraph: 
‘‘(11) ELECTION TO HAVE SECTION APPLY.— 
This section shall apply to any taxpayer for any tax-
able year only if such taxpayer elects (at such time 
and in such manner as the Secretary may by regula-
tions prescribe) to have this section apply for such 
taxable year.’’. 
(c) CREDIT MADE REFUNDABLE.— 
(1) CREDIT MOVED TO SUBPART RELATING TO 
REFUNDABLE CREDITS.—Such Code is amended— 
(A) by redesignating section 36 as section 
37, 
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(B) by redesignating section 21, as amend-
ed by this section, as section 36, and 
(C) by moving section 36 (as so redesig-
nated) from subpart A of part IV of subchapter 
A of chapter 1 to the location immediately be-
fore section 37 (as so redesignated) in subpart 
C of part IV of subchapter A of chapter 1. 
(d) CONFORMING AMENDMENTS.— 
(1) Section 224(b) of such Code, as added by 
this Act, is amended— 
(A) by striking ‘‘section 21(b)’’ in para-
graph (1) and inserting ‘‘section 36(b)’’, 
(B) by striking ‘‘section 21’’ in paragraph 
(2)(B) and inserting ‘‘section 36’’, 
(C) by striking ‘‘section 21(b)(1)(C)’’ in 
paragraph 
(3) 
and 
inserting 
‘‘section 
36(b)(1)(C)’’, and 
(D) by striking ‘‘section 21’’ in paragraph 
(4) and inserting ‘‘section 36’’. 
(2) Subsection (e) of section 213 of such Code 
is amended by striking ‘‘section 21’’ and inserting 
‘‘section 36’’. 
(3) Paragraph (2) of section 6213(g) of such 
Code is amended by striking ‘‘section 21’’ each place 
it appears and inserting ‘‘section 36’’. 
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(4) Paragraph (2) of section 1324(b) of title 
31, United States Code, is amended by inserting ‘‘, 
36,’’ after ‘‘section 35’’. 
(5) The table of sections for subpart A of part 
IV of subchapter A of chapter 1 of such Code is 
amended by striking the item relating to section 21. 
(6) The table of sections for subpart C of part 
IV of subchaper A of chapter 1 of such Code is 
amended by striking the item relating to section 36 
and inserting the following new items: 
‘‘Sec. 36. Expenses for household and dependent care services necessary for 
gainful employment. 
‘‘Sec. 37. Overpayments of tax.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to expenses paid in taxable years 
beginning after the date of the enactment of this Act. 
Æ 
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