I 
113TH CONGRESS 
2D SESSION 
H. R. 5258 
To amend the Internal Revenue Code of 1986 to index the dependent care 
credit and income exclusion for inflation. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 30, 2014 
Mrs. CAPITO (for herself, Mrs. MCMORRIS RODGERS, Mrs. WAGNER, Mrs. 
ELLMERS, Mrs. BACHMANN, Mr. VALADAO, Mr. RODNEY DAVIS of Illi-
nois, Ms. GRANGER, Mrs. LUMMIS, and Mr. FITZPATRICK) 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 index 
the dependent care credit and income exclusion for inflation. 
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 ‘‘Families First Act’’. 
SEC. 2. INFLATION ADJUSTMENTS OF CREDIT AND EXCLU-
SION FOR DEPENDENT CARE EXPENSES. 
(a) CREDIT.— 
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(1) IN GENERAL.—Section 21(e) of the Internal 
Revenue Code of 1986 is amended by adding at the 
end the following new paragraph: 
‘‘(11) INFLATION ADJUSTMENT.— 
‘‘(A) IN
GENERAL.—In the case of any 
taxable year beginning in a calendar year after 
2014, the dollar amounts in subsections (a)(2) 
and (c)(2) shall each be increased by an 
amount equal to— 
‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the cost-of-living adjustment de-
termined under section 1(f)(3) for the cal-
endar year in which the taxable year be-
gins, determined by substituting ‘calendar 
year 2013’ for ‘calendar year 1992’ in sub-
paragraph (B) thereof. 
‘‘(B) ROUNDING.—Any increase deter-
mined under subparagraph (A) shall be rounded 
to the nearest multiple of $10.’’. 
(2) DOLLAR LIMIT ON AMOUNT CREDITABLE.— 
Section 21(c)(1) of the Internal Revenue Code of 
1986 is amended by striking ‘‘$3,000’’ and inserting 
‘‘50 percent of the amount in effect under para-
graph (2) for the taxable year’’. 
(b) EXCLUSION.— 
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(1) IN GENERAL.—Section 129(e) of the Inter-
nal Revenue Code of 1986 is amended by adding at 
the end the following new paragraph: 
‘‘(10) INFLATION ADJUSTMENT.— 
‘‘(A) IN
GENERAL.—In the case of any 
taxable year beginning in a calendar year after 
2014, the dollar amount in subsection (a)(2)(A) 
shall be increased by an amount equal to— 
‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the cost-of-living adjustment de-
termined under section 1(f)(3) for the cal-
endar year in which the taxable year be-
gins, determined by substituting ‘calendar 
year 2013’ for ‘calendar year 1992’ in sub-
paragraph (B) thereof. 
‘‘(B) ROUNDING.—Any increase deter-
mined under subparagraph (A) shall be rounded 
to the nearest multiple of $10.’’. 
(2) 
LIMITATION
ON
EXCLUSION.—Section 
129(a)(2)(A) of the Internal Revenue Code of 1986 
is amended by striking ‘‘$2,500’’ and inserting ‘‘50 
percent of such amount’’. 
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