I
103D CONGRESS
1ST SESSION
H. R. 3472
To amend the Internal Revenue Code of 1986 to allow employers a credit
for a portion of the expenses of providing dependent care services to
employees.
IN THE HOUSE OF REPRESENTATIVES
NOVEMBER 9, 1993
Ms. PRYCE of Ohio (for herself, Mr. ROEMER, Mr. BILBRAY, Mr. BLUTE, Mr.
DIAZ-BALART, 
Mr. 
DORNAN, 
Ms. 
DUNN, 
Mr. 
EMERSON, 
Mr.
FINGERHUT, Mrs. FOWLER, Mr. GALLO, Mr. GILCHREST, Mr. GREEN-
WOOD, Mr. HOBSON, Mr. HYDE, Mrs. JOHNSON of Connecticut, Mr. KIM,
Mr. KLUG, Mr. KNOLLENBERG, Mr. KYL, Mr. LEWIS of California, Mr.
LIGHTFOOT, Mr. LINDER, Mr. MCHUGH, Mr. MCKEON, Ms. MOLINARI,
Mr. PETRI, Mr. QUINN, Mr. SHAYS, Mr. SOLOMON, Mr. TORKILDSEN,
Mr. UNDERWOOD, and Mrs. VUCANOVICH) 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 em-
ployers a credit for a portion of the expenses of providing
dependent care services to employees.
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 Availability
Incentive Act’’.
SEC. 2. CREDIT FOR EMPLOYER EXPENSES IN PROVIDING
CERTAIN DEPENDENT CARE SERVICES.
(a) GENERAL RULE.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by adding at the end thereof the follow-
ing new section:
‘‘SEC. 45C. EMPLOYER EXPENSES IN PROVIDING DEPEND-
ENT CARE SERVICES.
‘‘(a) GENERAL RULE.—For purposes of section 38,
the employer day care center credit determined under this
section for the taxable year is the amount determined
under subsection (b) with respect to each qualified day
care center of the taxpayer.
‘‘(b) CREDIT PER FACILITY.—For purposes of this
section—
‘‘(1) IN
GENERAL.—The amount determined
under this subsection for any taxable year with re-
spect to any qualified day care facility of the tax-
payer is 50 percent of the excess (if any) of—
‘‘(A) the expenses paid or incurred by the
taxpayer during the taxable year in providing
dependent care services at such facility for em-
ployees, over
‘‘(B) the aggregate amount received or ac-
crued during the taxable year by the employer
for such services.
‘‘(2) DEPRECIATION
ALLOWANCES.—For pur-
poses of paragraph (1), depreciation allowances
under section 167 shall be treated as expenses.
‘‘(c) QUALIFIED DAY CARE CENTER.—For purposes
of this section, the term ‘qualified day care center’ means
any day care center—
‘‘(1) which is operated by the taxpayer exclu-
sively for purposes of providing dependent care serv-
ices to employees,
‘‘(2) which is located on the business premises
of the taxpayer or on a site adjacent to such prem-
ises,
‘‘(3) which complies with all applicable laws and
regulations of a State or unit of local government,
and
‘‘(4) the operation of which is part of a depend-
ent care assistance program (as defined in section
129(d)).’’
(b) CREDIT MADE PART OF GENERAL BUSINESS
CREDIT.—Subsection (b) of section 38 of such Code is
amended by striking ‘‘plus’’ at the end of paragraph (10),
by striking the period at the end of paragraph (11) and
inserting ‘‘, plus’’, and by adding at the end thereof the
following new paragraph:
‘‘(12) the employer day care center credit deter-
mined under section 45C(a).’’
(c) DENIAL OF DOUBLE BENEFIT.—Section 280C of
such Code is amended by adding at the end thereof the
following new subsection:
‘‘(d) CREDIT FOR EMPLOYER DAY CARE CENTER
EXPENSES.—No deduction shall be allowed for that por-
tion of the expenses referred to in section 45C(b)(1)(A)
otherwise allowable as a deduction for the taxable year
which is equal to the amount of the credit determined for
such taxable year under section 45C(a).’’
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
the date of the enactment of this Act.
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