I 
110TH CONGRESS 
2D SESSION 
H. R. 5655 
To amend the Internal Revenue Code of 1986 to expand and improve the 
dependent care tax credit. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 14, 2008 
Mr. WEINER 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 expand 
and improve the dependent care tax credit. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. EXPANSION AND IMPROVEMENT OF DEPEND-
ENT CARE TAX CREDIT. 
(a) INCREASE IN DOLLAR LIMIT ON AMOUNT OF EM-
PLOYMENT-RELATED
EXPENSES
WHICH
ARE
CRED-
ITABLE.—Subsection (c) of section 21 of the Internal Rev-
enue Code of 1986 is amended— 
(1) by striking ‘‘$3,000’’ in paragraph (1) and 
inserting ‘‘$6,000 ($9,000 in the case of a taxpayer 
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whose adjusted gross income is less than $30,000)’’, 
and 
(2) by striking ‘‘$6,000’’ in paragraph (2) and 
inserting ‘‘$12,000 ($18,000 in the case of a tax-
payer whose adjusted gross income is less than 
$30,000)’’. 
(b) REPEAL OF REQUIREMENT THAT DEPENDENT 
AND TAXPAYER SHARE THE SAME PLACE OF ABODE.— 
(1) IN
GENERAL.—Paragraph (1) of section 
21(b) of such Code is amended— 
(A) by inserting ‘‘(determined without re-
gard to section 152(c)(1)(B))’’ after ‘‘section 
152(a)(1)’’ in subparagraph (A), and 
(B) by striking ‘‘and who has the same 
principal place of abode as the taxpayer for 
more than one-half of such taxable year’’ in 
subparagraphs (B) and (C). 
(2) EXPENSES FOR CARE OF DEPENDENT OUT-
SIDE OF HOME TAKEN INTO ACCOUNT.— 
(A) IN GENERAL.—Paragraph (2) of sec-
tion 21(b) of such Code is amended by striking 
subparagraph (B) and by redesignating sub-
paragraphs (C) and (D) as subparagraphs (B) 
and (C), respectively. 
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(B) CONFORMING AMENDMENT.—Subpara-
graph (B) of section 21(b)(2) of such Code, as 
redesignated by subparagraph (A), is amended 
by striking ‘‘a dependent care center’’ and all 
that follows and inserting ‘‘a dependent care 
center shall be taken into account only if such 
center complies with all applicable laws and reg-
ulations of a State or unit of local govern-
ment.’’. 
(c) RETIREES MADE ELIGIBLE FOR CREDIT.—Sub-
section (f) of section 21 of such Code is amended— 
(1) by striking ‘‘The Secretary’’ and inserting 
the following: 
‘‘(1) IN GENERAL.—The Secretary’’, and 
(2) by adding at the end the following new 
paragraph: 
‘‘(2) ELIGIBILITY OF RETIREES FOR CREDIT.— 
The Secretary shall prescribe regulations under 
which retirees may be eligible for the credit provided 
under this section. Such regulations may deem such 
retirees to be gainfully employed and to have earned 
income, to such extent and in such amounts as the 
Secretary determines appropriate, for purposes of 
this section.’’. 
(d) CREDIT MADE REFUNDABLE.— 
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(1) IN GENERAL.—Part IV of subchapter A of 
chapter 1 of such Code is amended— 
(A) by redesignating section 36 as section 
37, 
(B) by moving section 21, as otherwise 
amended by this section, after section 35, and 
(C) by redesignating such section 21 as 
section 36. 
(2) CONFORMING AMENDMENTS.— 
(A) Paragraph (2) of section 1324(b) of 
title 31, United States Code, is amended by in-
serting ‘‘or 36’’ after ‘‘section 35’’. 
(B) The table of sections for subpart A of 
such part is amended by striking the item relat-
ing to section 21. 
(C) The table of sections for subpart C of 
such part is amended by redesignating the item 
relating to section 36 as an item relating to sec-
tion 37 and by inserting after the item relating 
to section 35 the following new item: 
‘‘Sec. 36. Expenses for household and dependent care services necessary for 
gainful employment.’’. 
(e) CERTAIN PRIOR IMPROVEMENTS
TO CREDIT 
MADE
PERMANENT.—Section 901 of the Economic 
Growth and Tax Relief Reconciliation Act of 2001 shall 
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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 
the date of the enactment of this Act. 
Æ 
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